Drill results hot at Hemlo’s Moyagee

The Moyagee gold property in Western Australia has quietly become one of the hottest prospects for Hemlo Gold (TSE).

Hemlo and its Aussie partner, Perilya Mines, have been exploring the property since 1991, gathering significant rotary-airblast (RAB) and reverse-circulation (RC) drill intercepts of 57.2 grams gold per tonne over 5 metres, 8.4 grams over 7 metres, 5.2 grams over 9 metres and 8.8 grams over 5 metres.

Over the past few months, six diamond drill holes have been completed to follow up the RC and RAB drilling.

The results, shown on page 2, are nothing if not encouraging.

Hole 1 intersected 3.1 metres of 12.94 grams gold per tonne; hole 2 hit 7.1 metres of 13.08 grams; and hole 3 hit 6.2 metres of 17.08 grams. All values are cut to 34.28 grams per tonne (1 oz. per ton).

The gold is hosted in a broad zone of highly sheared and altered volcanic rocks which have been cut by mineralized quartz-carbonate veins and porphyry units. The mineralized zone has a strike length exceeding 300 metres and extends from surface down to a vertical depth of 300 metres. It remains open downdip and along strike.

Drilling is ongoing.

“It’s a good prospect,” says Ian Atkinson, Hemlo Gold’s vice-president of exploration. “With the values we’re getting, you can build up ounces fairly quickly. But it’s too early to say whether the deposit is economic.” Atkinson noted that the Moyagee appears to have the potential to reach Hemlo’s minimum target size of 1 million oz. gold.

Hemlo holds interests ranging from 52.2% to 70% in the various subdivisions of the 82-sq.-km Moyagee property. Perilya, the operator of the project, holds the remainder.

Results from the first five diamond drill holes are shown below: HoleIntervalWidthGold (uncut)Gold (cut)

(m)(m)(g/t)(g/t)

MGD11304.4-307.53.116.8912.94

MGDD2371.3-378.47.116.6613.08

MGDD3354.8-361.06.231.0917.08

MGDD4.0255-260.45.4 2.22 2.22

278.2-286.07.8 2.38 2.38

MGDD5no significant intercepts