There’s more gold in the hills around New Guinea Gold‘s (NGG-V) already producing Sinivit mine in Papua New Guinea, and what is especially good news for the company is that it is high grade and near surface.
The Vancouver-based company announced results from the latest round of 35 reverse circulation drill holes that were drilled in the central and southern oxide gold zones.
One of the holes returned a best intersection yet of 36.7grams gold over 8 metres within a wider interval of 14 metres at 23.5 grams gold.
The hole was stopped in 4.2 gram gold at a depth of 14 metres.
Other highlight intersects included 20 metres at 8 grams gold per tonne and 10 metres grading 11.4 grams gold.
The true thickness of intersections is not known and mineralization, New Guinea says, is open at depth
New Guinea Gold says many holes were stopped while still in mineralization greater than 0.5 grams per tonne.
Drilling at the project, it says, is largely being done with an eye towards expanding the oxide cap where mining is already being done.
But drill holes in the Central Gold zone are discovering new oxide gold mineralization. While holes in the Southern Gold Zone are extending the high grade gold zone hit with past holes.
Commercial production at the mine began in April of this year and the company plans to ramp up to 35,000 oz. of production per year.
Indicated resources at the site stand at 713,000 tonnes grading 5.7 grams gold for 132,000 oz. of gold while inferred resources come in at 340,000 tonnes grading 3.2 grams gold for 35,000 oz. of gold.
The project sits 50-km southwest of Rabaul in the Baining Mountains of East New Britain Province in Papua New Guinea.
In Toronto on Oct. 16 which was another down day for the overall market — New Guinea shares were down roughly 4% or 1 to 22.5 on roughly 188,000 shares traded.
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