Great Southern Mining appears to have put some serious meat on the bones of its Mon Ami gold story near Laverton in Western Australia, with drilling extending mineralisation by up to 70 metres down-dip and 55m down-plunge.
Mon Ami already hosts a JORC resource of 1.56 million tonnes at 1.11 grams per tonne (g/t) gold. The latest campaign is designed to find out how much bigger the known deposit could become by chasing it deeper. It is also testing for a potential repeat lode immediately to the north at its Blanc Platt prospect.
The first six holes from a 16-hole reverse circulation drilling campaign have stretched the existing resource envelopevertically at depth and down-plunge to the north.
Leading the charge was 16m at 3.37g/t gold from 178m. It included a richer 4-metre core at 8.54g/t and 2m at 6.86g/t. Other solid hits included 19m at 1.12g/t, 16m at 1.28g/t and 6m at 1.83g/t, with the latter containing a one-metre spike at 7.28g/t.
The results fit neatly with the company’s geological model of a north-plunging higher-grade shoot extending beneath the relatively shallow existing resource, which has historically been constrained to approximately 150m below surface.
Archaeological, ethnographic, flora and fauna surveys have been completed, along with metallurgical and waste-rock classification studies. Previous metallurgical testwork returned average gold recoveries of approximately 95 per cent from oxide and transitional material using conventional processing.
Adding some geological swagger to the deeper hunt is the historic Ida H mine, just 8km along strike from Mon Ami on the same regional shear zone. Ida H was a high-grade beast in its day, producing 170,650 ounces at an average grade of 22.6g/t from underground mining.
There is no guarantee Mon Ami will replicate those grades. Nonetheless, Ida H provides a compelling geological analogue for the deeper hunt, while the latest hits give the company plenty of fresh ground to test as it follows the mineralised system down.
Great Southern Mining managing director Matthew Keane said: “With this being really the first campaign at Mon Ami, it is very exciting that we are seeing wide zones of higher grade opening up at depth.”
The company now has the newly opened areas in its sights for future drilling. More immediately, the drill-bit verdict is still to come in from Blanc Platt, where assays are pending from another 10 holes testing for a possible repeat lode immediately north of the existing resource.
With gold fetching approximately A$6250 an ounce, the timing is handy, putting fresh ounces in established gold country firmly in the spotlight.
Great Southern's WA growth story also carries extra weight since Mon Ami has plenty of its development ducks lined up. It sits on a granted mining licence and already has an approved haulage route linking the project to the sealed Elora-Mount Weld Road and the wider district road network.
The company says it considers Mon Ami a potential near-term development opportunity. The Granny Smith processing facility is approximately 12km away, while multiple operating and planned gold plants sit within a 50km trucking radius.
That potentially gives Mon Ami satellite-feed or toll-treatment options without the need to contemplate a standalone processing plant.
Away from Mon Ami, the company has plenty more drill news stacking up. Assays remain pending from 38 holes covering 4726m at its Golden Boulder gold discovery, while reverse circulation drilling continues at Amy Clarke in WA. In northern Queensland, diamond drilling is also underway with joint venture partner Gold Fields at the Mt Dillon prospect.
Great Southern isn’t just poking holes in the dark at Mon Ami; it is methodically extending a known deposit in a world-class address. With another 10 holes waiting to show their hand, the hunt is now on to establish just how much bigger Mon Ami can become.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Penny Taylor
