Metaliko Resources drilling identifies consistent gold trend at Seven Seas Project

Metaliko Resources (ASX: MKO) has intersected zones of gold mineralisation down dip and along strike from historical drilling undertaken at its Seven Seas Gold Project in Western Australia, demonstrating continuity and lithologic controls.

Highlights from the initial reverse circulation drill results include: 

- 3 metres at 3.31 grams per tonne (g/t) gold from 58 metres;
- 3 metres at 3.13g/t gold from 69 metres; and
- 1 metres at 10.30g/t gold from 90 metres.

Metaliko’s Seven Seas Project is located on the Zulekia Shear Zone, 70 kilometres north west of Kalgoorlie, and was subject to historical exploration with much of the activity occurring between 1980 and 2000.

Metaliko's exploration is following up the gold mineralisation previously identified from near surface to depths of more than 150 metres, as clay-prone soils in the area obscured much of the surrounding bed rock geology. 

The company has collated data from more than 800 rotary air blast and reverse circulation drill holes over the consolidated tenement area and has determined a consistent gold trend in the deeper regolith and bedrock.

Peak values in the drill holes show near continuous trends of significant gold anomalism from 100 parts per billion (ppb) gold to 16700 ppb gold over a strike length in excess of 7 kilometres.

Metaliko completed its first 13 reverse circulation drill holes for a total of 850 metres in November 2011, designed to test the continuity of mineralisation encountered in the wider spaced historical drilling.

Results demonstrate significant continuity of gold mineralisation in the oxidised and partially oxidised bedrock. Significantly, the highest assay was the deepest at 90 metre down hole (78 metre vertical) and about 20 metre below the base of complete oxidation.

Metaliko is also progressing exploration programs aimed at substantive discoveries on it major landholdings at Windanya and Bullabulling.

In addition, the company is conducting resource drill outs and project development studies on areas of known gold mineralisation that it terms mine truck and treat (MTT) projects.

In the Eastern Goldfields the existing treatment plant and haul road infrastructure means that even modest resources can have commercial value.

MTT projects offer the potential for low capital early cash flow that can then enhance the company’s major exploration initiatives.

The company is planning further drilling at Seven Seas next year.

Originally published at: http://seekingalpha.com/instablog/485861-proactive-investor/245145-metaliko-resources-drilling-identifies-consistent-gold-trend-at-seven-seas-project