Metaliko Resources to kick off drilling at third potential MTT gold project in October

Metaliko Resources (ASX: MKO) will commence reverse circulation drilling at the advanced Baden Powell Prospect in early October, where historical gold workings show considerable potential.

Baden Powell is one of three advanced gold prospects and eight aeromagnetic targets within the Windanya Project in the Eastern Goldfields of Western Australia, located 50 kilometres north of Kalgoorlie.

Using modern exploration techniques and concepts, Metaliko is confident it has the potential to make new and substantive discoveries in this premier gold region which has an existing haul road and multiple processing plants.

Significantly, Metaliko believes Baden Powell has the potential to form the third of its Mine Truck and Treat (MTT) projects, along with the Anthill and Goongarrie projects.

Metaliko is evaluating how to unlock early cash flows from smaller projects through its MTT strategy. Low capital requirements with no plant or related infrastructure will assist the strategy.

Both the Anthill and Goongarrie projects are now being advanced through regulatory permitting for open cut operations where there is potential for early production.
Total Indicated and Inferred Resources for Anthill are 160,000 ounces at 0.96 grams per tonne (g/t) gold, and for Goongarrie are 13,400 ounces at 1.83 (g/t) gold.

The reverse circulation drilling program will comprise 12 holes for a total of 850 metres and will be supplemented with five trenches dug in the bottom of the 5 metre to 8 metre trial mining pit.

Trenching in the pit has already commenced and results are expected to be received in about three weeks and the drilling results should be received by the end of October.

The company’s five leading project areas contain areas of gold mineralisation largely last drilled between 1980 and 2001.

Baden Powell has historical gold workings and prospecting pits spread over a strike length of 2 kilometres. Historical production from the Baden Powell shaft was 582 tonnes with a recovered grade of 35.6g/t gold.

A trial open pit was dug by Mistral Mines in the 1980s and 913 tonnes were treated for a recovered grade of 3.4g/t gold. This was below the expected grade and no further production was undertaken.

Between about 1980 and the early 1990s a series of rotary air blast, reverse circulation and several diamond core tails were drilled around the Baden Powell workings.

Metaliko has managed to collate much of this data and interpret it in the context of the broader understanding of the Windanya geology provided by the aeromagnetic data flown by Metaliko earlier this year.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/19901/metaliko-resources-to-kick-off-drilling-at-third-potential-mtt-gold-project-in-october-19901.html