KalGold set to hammer WA targets near Laverton

Kalgoorlie Gold Mining is set to hammer further gold targets with its fourth air-core drill program at the company’s Pinjin project in WA’s renowned 30-million ounce Laverton Tectonic zone, one of the state’s biggest gold endowment regions and host to several producing gold mines.

The program will target the company’s prospective Kirgella East gold prospect with a planned 4000m maiden drill campaign.

Management says the drilling will test targets under shallow cover at Kirgella East, which comprises several structural and geophysical features about 1200m east-north-east of its Kirgella Gift-Providence mineral resource.

The company recently revealed a resource of 2.34 million tonnes grading 1 gram per tonne gold for 76,400 ounces with mineralisation starting from a depth of 3m at Kirgella Gift-Providence.

The Kirgella East area overlies one of the main regional structures within the gold-endowed Laverton Tectonic zone, which hosts several producing goldmines such as AngloGold Ashanti’s Sunrise Dam, Goldfields’ multi-million ounce Granny Smith operation and Ramelius Resources’ Rebecca project that contains a 1.1 million ounce gold resource.

The company interprets various fold and fault structures from different geological units within the project’s ground with the potential for hydrothermal mineralisation. It notes the site has never been drill-tested with the program designed to cover the area using wide-spaced drilling on 320m-by-80m centres across four drill lines.

KalGold managing director Matt Painter said: “At KalGold, we are continuing to accelerate our exploration efforts. This is the fourth aircore drill program testing gold targets within the Pinjin Gold Project beyond the footprint of the Kirgella Gift and Providence deposits.”

Management says it initially planned to drill Kirgella East as part of the last air-core program, however encouraging observations from drilling initially undertaken at Kirgella West, prompted it to continue probing the western side and leave the eastern ground for this campaign.

The assays from Kirgella West are expected in early December.

KalGold also has the Bulong Taurus Project, some 35 km east of Kalgoorlie-Boulder. The site contains the outcropping La Mascotte gold deposit where it has defined a JORC 2012 inferred resource of 3.61 million tonnes at 1.19 g/t gold for 138,000 ounces. Several nearby satellite prospects and historic workings that the company can dig deep into, offer upside potential to the project.

KalGold appears to be in the right area and with the price of the precious yellow metal on a tear this year, up more than 33 per cent, it looks to have chosen the right commodity to focus its exploration efforts on.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au