White Cliff Minerals Ltd begins drilling high-grade gold zone at Aucu
Date
5/31/2016 5:48:08 AM
(MENAFN- ProactiveInvestors - Australia)
White Cliff Minerals Ltd (ASX:WCN) has commenced diamond drilling, targeting a 45 g/t gold average grade area within the Aucu gold project in the Kyrgyz Republic.
White Cliff is targeting the eastern upper gold zone (UGZE), which has an upper end exploration target of 2 million tonnes grading 30 g/t for 1.2 million ounces of gold.
The first hole is targeting a mineralised zone 50 metres below a previous intersection grading 3 metres at 41.4 g/t gold and 1 metre at 58 g/t gold.
Assay results are expected within 4 weeks of completing each drill hole and pre-assay rock chip samples will be available within 2 weeks.
Aucu gold deposit
The 89% owned Aucu gold deposit is located in the Kyrgyz Republic, which is a democratic republic bordering Kazakhstan and China.
The company announced a maiden inferred resource for the Aucu gold deposit above a cut-off grade of 1 g/t gold of 1.15 million tonnes grading 4.2 g/t gold for 156,000 ounces of contained gold.
In 2015, drilling identified exceptional gold mineralisation east of this resource in the UGZE over a strike length of at least 500 metres.
Results included 8 metres at 55.2 g/t gold and 4 metres at 59.9 g/t gold.
Overall metallurgical recovery of all mineralised zones discovered at Aucu is 99% with gravity recoverable gold averages of 88.6%.
New mineralised zones
White Cliff recently discovered visible gold in new mineralised zones at Aucu while bulldozing access roads.
The visible gold was panned from a 1 kilogram sample taken from the widest zone measuring 17 metres.
Additional mineralised zones are expected as the bulldozer continues to cut access tracks.
2016 exploration program
The 2016 exploration program is focussed on drilling out the UGZE along 800 metres of strike to 200 metres vertical depth.
The exploration target for the UGZE in 2016 is 1-2 million tonnes at 15-30 g/t for 500,000 to 1.2 million ounces of gold.
Analysis
The commencement of drilling marks the highly anticipated start of a campaign to scale the Aucu gold deposit to over one million ounces of gold.
With the 2016 exploration program formally approved and drilling expected to continue throughout the year, constant news flow is expected and WCN, a stock to watch.
Mineralisation at the UGZE outcrops at surface and remains open in both directions and at depth.
White Cliff is well capitalised to fund initial drilling having recently completed a $2.64 million to professional and sophisticated investors through Hartleys.
White Cliff is one of our top picks for 2016/17 given its current market cap of just $8.7 million and is leveraged to exploration news flow.
Rock chip results are expected within two weeks of completion of the first hole currently being drilled.
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