Kalgoorlie Mining Company (ASX: KMC) has discovered some very high grade gold intersections just below the surface in stage two drilling at the Bullant gold project in Western Australia.
The highlight is 4.60 metres at 26.19 grams per tonne (g/t) gold from 12.7 metres, which was supported by other intersections including 3.30 metres at 4.43g/t gold from 114 metres, and 2.97 metres at 3.95g/t gold from 103 metres.
The significance of the gold discoveries are that they are at the East Lode which runs parallel to the “Main Lode”, and highlights that the Bullant mine contains areas of high grade gold mineralisation in very close proximity to the current Bullant mine workings - and provides a high priority target for the company.
Results to date indicate that the East Lode mineralisation is persisting at depth and is not closed off, with an initial resource for the lode forecast for delivery before the end of 2011.
Kalgoorlie Mining said that it expects with further drilling, which is currently underway, that the resource at the East Lode will continue to grow - providing a strong news flow for investors in the short term.
Further stage two and stage three drilling results will also add to the news flow.
The Bullant gold project
Kalgoorlie Mining continues to move the Bullant project forward quickly, which is located about 70 kilometres from Kalgoorlie.
Just last month the company announced a 68% boost in the mineral resource to 2.4 million tonnes at 3.20g/t gold for 250,000 ounces with a 1.0 g/t cut off grade.
The upgrade came within just two weeks of the company's transition into a cash generating gold miner at Bullant - by achieving first gold ore sales via a gold ore agreement with Barrick Mines' (NYSE: ABX) Australian subsidiary.
Adding some further interest to the Kalgoorlie Mining, the company is currently looking to North American institutions for debt funding to progress the gold mill which will consist of a 1.2 million tonne per annum primary crusher, gravity circuit, 1600Mw ball mill, leach and absorption tanks (CIL), electrical and MCC.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/20578/kalgoorlie-mining-company-discovers-460m-at-2619gt-gold-at-bullant-20578.html
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