(MENAFN- ProactiveInvestors - Australia) Cortona Resources (ASX: CRC) has intersected further high grade gold mineralisation at its flagship Dargues Reef Gold Project in New South Wales and discovered two new anomalies in the area.
Notable results from drilling at the Ruby Lode of Dargues Reef include 2 metres at 12.3 grams per tonne (g/t) gold from 62 metres and 5 metres at 6.77g/t gold from 43 metres.
This has also extended the mineralisation at Ruby Lode along strike and at depth.
Cortona has also discovered a geochemical arsenic-in-soils anomaly at Doubloon 2 kilometres north of Dargues Reef and a new copper-molybdenum-gold-silver anomaly about 20 kilometres north of Dargues Reef.
The Doubloon anomaly measures 2,000 metres by 500 metres with coincident molybdenum, gold and silver mineralisation. It has returned encouraging first-pass drill results including 1 metre at 2.76g/t gold and 5.1g/t silver from 23 metres downhole.
While arsenic does not feature at Dargues Reef, it is a common pathfinder element in hydrothermal systems associated with gold deposits.
The discovery of the northern anomaly follows geophysical interpretation, soil and rock chip sampling, and RC drilling at Napoleon, all of which have enhanced levels of these metals.
The mineralisation is associated with the porphyritic Eurodux Granite, which is intruded into the Braidwood Granodiorite, and forms a dominant geological feature in the northern third of Cortona's tenement package.
While still early days for this discovery, the repeated occurrence of elevated copper-molybdenum-gold-silver, with associated bismuth, lead and zinc in soils, rock chips and drill intercepts, points to the discovery of a previously unidentified mineral occurrence that is geochemically consistent with documented copper-molybdenum porphyry deposits.
Shallow RC drilling has also confirmed the presence of gold-bearing structures beneath anomalous gold-in-soils at Nightingale and Redbank.
Dargues Reef
Cortona has regulatory approval to develop Dargues Reef and has the green light from the Parkes Shire Council to modify and use the London Victoria processing plant that was previously owned by BHP Billiton for off-site processing of gold concentrate from Dargues Reef.
Surface plant and infrastructure at Dargues Reef and London Victoria is expected to cost A$55.4 million. Underground development through to first production is expected cost A$10.6 million, and site operating costs leading up to production are expected to be A$11.6 million.
The forecast life of mine economics based on the current 257,000 ounce mineral inventory and a gold price of $1,600 would return free cash flow of $112 million and has an NPV of A$66.6 million.
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