BM Diamondcorp finds gold in PNG (June 25, 2004)

BM Diamondcorp (BDI-V) has intersected significant gold in three holes drilled on its Woodlark Island project, 300 km east of mainland Papua New Guinea.

Two holes confirmed previous reverse-circulation (RC) results. The first hole, BKD-1, intersected 17 metres grading 1.68 grams gold per tonne at a depth of 110 metres down-hole. It also intersected 3 metres of underground workings from past development of the Kulumadau deposit. The assay results from the RC drilling were higher, and it is now believed they were contaminated by the mine workings.

One hundred metres along strike, the second hole intersected 83 metres grading 4 grams gold. This intersection comprises five higher-grade intercepts (43 metres in total) grading 3.82-21.12 grams gold over widths of 4-12 metres. Again 3 metres of underground workings were intersected.

The third hole, BKD-3, intersected several intercepts with visible gold. The hole was positioned to intersect the centre of the Kulumadau deposit, about 75 metres vertically down-dip from the mineralized zone intersected in BKD-1. At 170 metres down-hole, 7 metres graded 31.84 grams gold, including a 2-metre section of 108.7 grams gold. At 278 metres, 6 metres graded 38.17 grams gold, including one 2-metre intercept of 92.6 grams gold per tonne. Other intercepts graded 0.16-7.02 grams gold over widths of 2-7 metres.

Gold targets are within a 12-km-wide horst block related, it would seem, to buried intrusions along the horst bounding structures. A series of mineralizing events are indicated by the presence of varying amounts and types of mineralization. The mineralized zone has a true width of up to 50 metres.

BM Diamondcorp became the owner of the Woodlark gold project in January. Current drilling is trying to increase a shallow resource delineated by previous drilling.