Kalgoorlie Mining Company high grade gold hits at Bullant identifies potential southern extension

Kalgoorlie Mining Company (ASX: KMC) in maiden surface diamond drilling has intersected high grade gold with hits located just 300 metres from previous development, increasing the potential of extending the resource further south.

The highlights included 3.4 metres at 8.16 grams per tonne (g/t) gold from 284 metres, and 10.2 metres at 6.32g/t gold from 282 metres.

Drilling tested areas south of the historic Bullant Mine Development to both infill and confirm confidence in areas of historic drilling, while exploring for possible depth and strike extensions of the “Main Lode”.

The area is highly prospective due to the proximity to the old mine in an area that contained no drill information, while being located outside the known interpretation of the Bullant Lodes.

Chris Daws, chief executive officer commented on the gold hits and said, "Whilst the program was designed to test the dominate lode at Bullant, the “Main Lode”, the drill holes also successfully intersected the “East Lode” a sub parallel lode that lies 60 metres away."

Drilling was also successful in intersecting a previously unknown zone, and although only narrow in thickness at 0.47 metres, it delivered high grade gold of 9.72g/t.

Its not just exploration success Kalgoorlie Mining is having at Bullant, but last month the company took a major step towards gold production by executing a non-binding term sheet with an Australian subsidiary of Barrick Gold Corporation (NYSE: ABX).

The agreement is for the proposed sale of ore from the Bullant Gold mine to Barrick’s Kanowna Belle processing facility, where ore was treated previously when Barrick operated the mine.

Bullant ore is currently being mined and transported to surface in preparation for crushing and grading.

Kalgoorlie Mining has said that there are ore producing slots that the company can access in the short term, providing the very real possibility Kalgoorlie Mining will produce gold within the next couple of months through the agreement.

This will provide short term cash flows for Kalgoorlie Mining, with the company aiming to produce up to 15,000 ounces of gold through the agreement over the next year.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/18020/kalgoorlie-mining-company-high-grade-gold-hits-at-bullant-identifies-potential-southern-extension-18020.html