Stratum Metals: drilling readies to follow up bonanza gold discoveries at Gidgee North

Stratum Metals (ASX: SXT) has interpreted gold mineralisation at the German Well South prospect as being hosted within a highly weathered package of sheared mafic rocks, after interpreting all the available data.

This data includes the drilling results by Stratum, released at the end of 2011, which included bonanza grade intersections such as 1 metre at 60.90 grams per tonne (g/t) gold, which was discovered within a broader intersection of 8 metres at 8.89g/t gold from 41 metres.

Other highlights from stage one drilling included 3 metres at 5.02g/t gold from 76 metres; 6 metres at 4.35 g/t gold from 95 metres; 5 metres at 3.03g/t gold from 79 metres; and 8 metres at 2.91g/t gold from 67 metres.

Stratum has now combined these results with historic drilling and assessed in conjunction with available geophysics, satellite imagery and historic geological mapping.

The company said that the area of most intensive drilling suggests a ladder-like stock-work nature to the mineralisation and potentially a series of plunging shoots, with drilling to test below this area - both up and down plunge.


Aggressive drilling program planned

The second stage drilling program planned will comprise around 6200 metres for 42 holes, with the company currently progressing with application for the required government approvals.


Gidgee Gold Project

The Gidgee Gold Project is located 640 kilometres northeast of Perth, in the Yilgarn region of Western Australia which has a long history of gold production and produces about 6% of Australia’s gold.

The project consists of E53/1440 at Gidgee South and E53/1494 at Gidgee North and lies near to Panoramic Resources (ASX: PAN) Gidgee Gold Project, which has a mining camp and process plant with a capacity of 600,000 tonnes per year of ore.

Stratum's plan is to fast track development of gold resources at Gidgee North and most likely strike a deal to utilise a nearby plant for ore processing.

With first drilling at the project completed, and a second campaign to start soon there exists potential for earlier low cost production given a nearby gold treatment plant.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/24456/stratum-metals-drilling-readies-to-follow-up-bonanza-gold-discoveries-at-gidgee-north-24456.html