With a drone magnetic survey and positive rock chip assays, Infinity Mining has confirmed two compelling magnetic targets adjacent to historical gold workings at the company’s Chicago gold project in WA’s Central Goldfields region.
The anomalous rock chips were recently collected by Infinity in proximity to its magnetic targets and yielded grades up to 2.37 grams per tonne gold. The anomalous shows in combination with the targets and historical workings have inspired the explorer to plan further work at the project including a round of RC drilling.
Small-scale gold mining occurred at the project in the late nineteenth century as evidenced by a peppering of historical mine workings found immediately north of the magnetic targets.
However, there are no signs of any previous drilling on the tenement.
The alignment of the workings and magnetic targets support the presence of a major east-north-east trending structure that is interpreted by Infinity to be associated with deeper gold mineralisation.
The company’s proposed drilling will test the targets for buried shear-hosted gold mineralisation at depth.
The Chicago project is part of Infinity’s broader Central Goldfields portfolio of eight projects in WA’s Leonora gold district.
An exploration campaign is currently underway across Infinity’s gold assets to follow up on the drone magnetic survey that was flown over four of its eight projects in May.
Infinity Mining Chief Executive Officer, Joe Groot said: “This new magnetic data, when combined with geochemical datasets, has gone a long way to upgrade the prospectivity of these projects, including Chicago.”
The projects are highly prospective for Archaean shear-hosted gold systems and volcanogenic massive sulphide base-metal deposits.
All Infinity’s tenements in the district lie in areas of Archean greenstones associated with major fault zones. Its portfolio is surrounded by several significant gold deposits such as ASX-listed Red 5’s 4.12-million-ounce King of the Hills and ASX-listed Northern Star Resources’ Kailis resource.
The Chicago project is located 35km north-west of Leonora and less than 10km west of the King of the Hills deposit.
Today on the primary futures and options market, COMEX, the most-traded gold futures contract for December delivery changed hands below US$1680 per ounce, down from its high of US$2091 on March 8.
It has been a tough summer in the northern-hemisphere for gold according to the World Gold Council who believes the precious metal could remain under pressure if central banks continue to hike interest rates aggressively.
The Council’s analysis also found that gold is one of the best performing assets during recessions. Interestingly, whilst the US has experienced two consecutive quarters of declining gross domestic product, a recession is yet to be declared.
The analysis over seven US periods of recession since 1971 found that gold had a median return of 0.92 per cent.
The return was comparably higher than other major asset classes including equities, commodities and energy although treasury and corporate bonds reigned supreme, returning 1.95 per cent and 2.33 per cent, respectively.
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By Matt Birney
