The Leonora East Gold Project covers over 40 kilometres of strike and is composed of two 'sub-projects', namely the Monarch Gold Trend and Benalla Gold Trend tenement areas. These tenement packages host a range of targets from geochemical anomalies through to prospects with near-term resource potential.

LEONORA EAST GOLD PROJECT

G88_020_20200113_G88_Tenement_Location_M
G88_019_20200110_Leonora_Region_Over_Reg

Summary

The Leonora East Gold Project is located approximately 40 km east and northeast of Leonora and 230 km north of Kalgoorlie. The project is composed of two sub-project areas - the Monarch Gold Trend ('MGT') in the north and the Benalla Gold Trend ('BGT') in the south.

 

The project lies adjacent to, and east of, the developing Kin Mining NL Cardinia Project, which hosts a resource of 945,000 oz gold across a number of near-surface deposits.

Targets at Leonora include both shear and lode style gold mineralisation.

Potential

The Leonora Gold Project has been held by various small exploration to medium mining companies but has been the subject of a limited exploration program, with little meaningful drill testing.

Golden Mile Resources has completed the first systematic sampling program over large areas of the project tenements. This work has identified extensive, coherent geochemical anomalies that preliminary drilling has shown to be associated with gold mineralised structures.

 

Exploration Program

Previous work by the Company on the MGT has included mapping and prospecting, which identified an extensive gold mineralised trend characterised by shearing and faulting and featuring high-grade gold and a large number of historical gold workings.  Most of these gold occurrences have not previously been recorded, surveyed or explored utilising modern exploration techniques.

The ongoing exploration program over the Leonora East includes:

  • Detailed compilation of the historical exploration and mining data for the region;

  • Analysis of the existing exploration data;

  • Auger surface sampling; and

  • Drill testing of geochemical anomalies.

 

Golden Mile Resources has identified a number of high priority geochemical anomalies along both the MGT and BGT. Drill testing of these anomalies has commenced with the objective of discovering new deposits.

Monarch Gold Trend

The MGT covers the eastern contact of the Mertondale Shear Zone with  basement granites and represents a poorly tested but extensive gold bearing structure extending over more than 16 km of strike. The MGT is adjacent to both the Mertondale Project being developed by KIN Mining NL (ASX:KIN) and to the Redcliffe Project which is being explored by NTM Gold Limited (ASX:NTM). These companies have both identified significant gold resources in a series of near-surface deposits hosted by mineralised structures.

Historical exploration to date over the MGT has included prospecting, surface sampling and auger drilling, with limited RAB/RC drilling follow up on selected targets.

 

Golden Mile has recently undertaken an extensive auger sampling program that has identified a number of significant, previously unknown geochemical anomalies along the MGT. The gold anomalies extend over at least 11 km of strike over mafic greenstone rocks west of a granitoid contact interpreted from both regional aerial magnetic data and geological mapping.

Initial aircore ('AC') drilling results indicate that shallow gold mineralisation occurs over 300-400 metres strike at the Wildcat and Royal Henry prospect areas and remains open along strike. Further work is required to assess potential strike extensions and to test at depth for primary gold mineralisation hosted by structures in the fresh rock.

G88_014_20191113_Royal_Harry_Section_683
MGT_web.jpg

Wildcat Prospect

The Wildcat Prospect is located within the northern Monarch Gold Trend (‘MGT’), approximately 40 km to the northeast of Leonora.

Wildcat Prospect is associated with a number of significant, previously unknown geochemical anomalies along the MGT that Golden Mile has identified with an extensive auger sampling program. The sampling, in conjunction with investigation of the historical workings and previous drilling in the area identified a number of mineralised trends that justified further drill testing.

A program of aircore (AC) drilling was completed at the Wildcat Prospect in December 2019 to evaluate the known mineralised structure. The drilling intersected significant gold mineralisation, with intersections including:

  • MTAC083, 1 m @ 76.4 g/t gold from 37 m downhole

  • MTAC074, 6 m @ 3.13 g/t gold from 40 m downhole (including 1m @ 5.15 g/t gold and 1m @ 11.4 g/t gold)

  • MTAC078, 8m @ 2.58 g/t gold from 28 m downhole

  • MTAC075, 2 m @ 5.98 g/t gold from 55 m downhole

  • MTAC073, 1 m @ 5.17 g/t gold from 21 m downhole

 

Results have confirmed that zones of very high grade gold mineralisation associated with quartz veining occur along a northwest – southeast trending structure.  The observed quartz veining is hosted by variably sheared, fine-grained mafic volcanic rock (basalt).  Gold mineralisation occurs over a strike length of approximately 150 metres and is open both along strike and down-dip.  Based on cross-section interpretation the mineralised structure has a steep to subvertical dip to the southwest.


The Company is preparing to implement a reverse circulation (RC) percussion drilling program at the Wildcat Prospect, comprising approximately 20 holes for 2,000 metres of drilling.  The holes have been planned to test the depth and strike extent of the known gold mineralisation, as well as evaluate the continuity of the mineralisation along strike.

BGT_web.jpg

Benalla Gold Trend

The Company identified a number of high priority surface geochemical gold anomalies on the Benalla Gold Trend ('BGT') during the 2019 exploration program.

 

Coherent gold anomalism extends over more than 10 kilometres of strike, confirming that the BGT contains a significant gold mineralised system. None of these anomalies have ever been drill tested in the past.

 

The BGT is located adjacent to the Cardinia gold camp, where Kin Mining NL (ASX:KIN) have defined a number of gold deposits with a total Measured, Indicated and Inferred gold resource of 372,000 oz Au in a similar geological terrane to the Company’s project area.

 

Golden Mile has planned an aircore drilling program to test key areas of the BGT.

© 2019 Golden Mile Resources Ltd.