Exploration drill results from Crescent Gold‘s (CRA-T, CRE-A) West Laverton Trend (WLT) part of its Laverton project in southwestern Australia gave the Perth-based company a healthy bump in Toronto.
The company which already has plans to go into production using ore from other parts of Laverton in a matter of weeks — was up over 19% or 7 to 41 on a busy 4.8 million shares traded.
Crescent says the results confirm the presence of a new high grade target that sits roughly 11 km southwest of the Laverton gold plant.
Assays are from 15 reverse circulation drill holes which dug 1,350 metres. Highlights include:
- 10 metres grading 7.7 grams gold from 75 metres (includes 2 metres at 23.7 grams)
- 9 metres grading 7 grams gold from 87 metres (includes 2 metres at 14.5 grams gold)
- 4 metres grading 6.7 grams gold from 56 metres (includes 2 metres at 10.6 grams gold)
- 6 metres grading 6.4 grams from 56 metres (includes 2 metres at 13.9 grams gold)
The lates results come from an area that sits 750 metres to the north of drill hole intersects reported in December. Those holes were highlighted by 12 metres grading 7.6 grams gold from 56 metres and 10 metres grading 4.6 grams from 26 metres.
The company says drilling is on going and assays are still pending for seven holes.
Crescent is comparing mineralization at WLT to the historic Craiggiemore underground mine which produced roughly 50,000 oz of gold between 1896 and 1912, with a headgrade of 11 grams gold. The old mine site sits roughly 500 metres north of southern most intersection at WLT.
The early success of the drill programs had Crescent chief executive Andrew Haythorpe optimistic about what future holes will bring.
“It confirms our view that plenty of untested potential remains at Laverton,” he said in a prepared statement.
With its proximity to the Laverton gold plant, the mineralization could provide feed if it is proven up. It sits just 200 metres from an existing haul road.
Crescent wholly owns the 4 km strike length of the banded iron formation (BIF) sequence that is within the WLT.
Mineralization occurs within the BIF — much like it did with Craiggiemore, where gold was strata bound within a BIF that underwent deformational and structural thickening.
The company says the width and geological nature of the eastern BIF warrants deeper drilling as it has been largely untested at depth.
Crescent Gold is set to become one of Australia’s next gold producers with an estimated output rising above 90,000 oz. a year over the next 12 months.
The company has doubled its resource at Laverton and has a reserve of 6.2 million tonnes grading 1.8 grams gold for 358,000oz.
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