King River phase-2 drilling jags high-grade NT gold

King River Resources has revealed a set of eye-catching assay results up to 26 grams per tonne (g/t) gold from shallow drilling at its Kurundi gold project near Tennent Creek in the Northern Territory.

The phase 2 drilling program at Kurundi consisted of 36 RC holes for 2,472m designed to look for new mineralised structures and extensions up to 1.5km from the main workings at Kurundi. The drill bit was also sent beneath the main mineralised zone to follow up on previous high-grade hits.

Shallow infill drilling at the main zone threw up the best results including one hole returning a 3m section grading 11.9g/t gold and a 1m slice at 26g/t gold within a 7m intersection running at 5.8g/t gold from 32m. 

The hole also confirmed a southerly plunge to the main structure, first identified in the November phase 1 drilling program.

Additional deeper drilling at the Kurundi Main prospect jagged a strong gold-bearing structure with one hole intersecting 11m grading 0.69g/t gold from 69m, including a 1m section running at 3.39g/t gold and 1m at 2.54g/t gold. 

Porphyry was identified as the dominant rock structure adjoining the footwall basalt suggesting the gold mineralisation may drop out into the contact between the two. The company plans to test this theory with 3D modelling.

Management says these results mark a significant improvement over previous drilling highlighting the high-grade mineralisation at the project and also the potential for new structural discoveries.

Beyond the high-grade zones, King River also identified three new structures with sniffs of gold, copper, silver and a newly discovered target 250m northeast of Kurundi Main. 

The new target contains historical underground workings showing strong veining and alteration in the shallower levels and is now considered an immediate follow-up opportunity.

Separate from exploration at Kurundi Main, King River’s regional exploration program is also starting to bear fruit. At the Millers prospect, 20km north of Kurundi, geochemical testing has picked up positive early signs of mineralisation. 

With values running at 0.7pc copper 1pc sulphur, and 40ppm bismuth in ironstones, the target bears all the hallmarks of a Tennant Creek iron oxide copper-gold (IOCG) style of mineralisation.

At Tarragans, another regional target, drilling touched on multiple gold-mineralised structures, with grades reaching up to 1.17g/t gold.

Moving forward, the next exploration campaign is being planned to identify more high-priority targets and grow the known mineralised zone at Kurundi. The company says ongoing interpretation of geophysical and geochemical data will also guide its hand for further exploration and resource expansion.

Tennant Creek is historically known for its world-class gold and copper deposits with mines such as Peko, which produced 150,000 tonnes of copper grading 4 per cent and 410,000 ounces of gold running at 3.5g/t.

Additional examples of similar discoveries in the area include the White Devil mine which produced 760,000 ounces of gold at 14.6g/t in the 1990’s and Nobles Nob - considered the richest mine for its size in Australia - which produced 1.17 million ounces of gold at a bumper grade of 17g/t during its mine life to 1985. 

In total the region has unearthed more than 5.5 million ounces of gold at an average grade of 6.9g/t and more than 700,000 tonnes of copper averaging 2.8 per cent grades making it one of the most profitable mining regions in Australia.

With the gold price seemingly on an unstoppable journey towards US$3000 per ounce, King River appears to be in the right place at the right time. Its chosen exploration grounds in the Tennent Creek region have already proven a rich hunting ground for explorers and the company appears to be well and truly picking up on that scent.  Given a little time and patience, King River could be on the verge of adding its name to the storied history of successful exploration companies in the region. 

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