More +20m gold hits drilled at Pennyweight shows high-value currency for Arika’s Yundamindra

Thick gold intersections provide further evidence of the rich potential of Arika Resources’ Yundamindra project near Leonora in drilling at Pennyweight Point.

Drilling at Yundamindra shows high-value gold beneath Pennyweight prospect Pic: Getty Images.

• Two more gold intersections up to 30m thick and 2.84g/t discovered at Pennyweight Point, part of Arika Resources’ Yundamindra project

• Gold hits are outside known mineralisation and open at depth, down plunge and along strike

• Assays pending for a further 22 holes

 

Special Report: Two more thick, high-grade intersections of gold of up to 30m wide and well over 2g/t in grade have been drilled by Arika Resources at Pennyweight Point.

The gold hits come on the back of a 30m at 3.86g/t gold intercept shown from the first hole in Arika Resources (ASX:ARI) (formerly known as Metalicity) drilling campaign targeting Pennyweight Point, part of its Yundamindra gold project near the historic WA gold town of Leonora.

Yundamindra prospectivity

Arika’s 80% owned Yundamindra (20% Nex Metals (ASX:NME)) sits on a mining lease strategically located 65km south-east of Leonora – meaning it’s in close proximity to a number of mills and easily accessible by road.

The region is dominated by Raleigh Finlayson’s Genesis Minerals (ASX:GMD), a $2.4bn market cap player with two process plants at Gwalia and Mount Morgans.

Arika is searching for the next major find in the hot gold district as prices crest record highs, raising $1m in July to investigate a gold project that was mined for significant historical production of 74,000t at 19.3g/t gold for 45,000oz.

Further exploration showed hits of 8m at 56.36g/t from 44m across a potential 20km of largely untested mineralised structures.

Latest drilling

Significant highlights from the latest batch of assays from nine holes include:

• 30m at 2.36g/t gold from 64m at hole YMRC060; and
• 23m at 2.84 g/t gold from 53m at hole YMRC059.

Significant, thick high-grade intercepts have been observed outside the historical interpreted mineralised zone, expanding the known mineralisation, with other significant intercepts validating historical results.

While they don’t match the historic grades seen in shallow mining from decades back, in the modern day thick intersections at those grades and depths are highly attractive.

The exceptional 30m intercept at 2.36g/t gold YMRC060 is outside the historical interpreted mineralisation at depth, showing the mineralisation – still shallow – is open at depth and down plunge.

Cross section of high-grade gold mineralisation from three holes and historical drill data. Pic: Arika

Assays have now been received for 11 holes out of the planned 33-hole program that covers the Pennyweight Point and Landed at Last prospects, with further results pending and expected in the coming weeks.

ARI managing director Justin Barton says momentum is rapidly building at Yundamindra:

“To follow up the initial high-grade intersection of 30m at 3.86g/t gold at Pennyweight Point with two further high-grade, thick intersections over 20m shows we are onto something quite significant.

“Importantly, these intersections extend the previously known mineralisation and expand the gold footprint in the area.

“The shallow high-grade mineralisation is very encouraging with gold prices continuing to hit record highs, and the company intends to follow up on these results and continue to demonstrate the scale potential of the project.

“…there is limited historical drilling below 60m, and these initial results from our maiden program at Yundamindra are already delivering thick, high-grade results.”

This article was developed in collaboration with Arika Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.