The zone was found during drilling in the south of its Tampia resource area, with highlights including 7m at 17.55 grams per tonne gold from 5m, including 1m at 94.5gpt gold; and 13m at 3.24gpt gold from 16m.
Explaurum said results from the first 28 drillholes, out of 70 completed so far on the project, were exceeding expectations, with 13 holes returning better results than predicted.
The company is now planning additional extensional drilling to close off the gold zone, with managing director John Lawton saying there was potential to “significantly” upgrade the project’s current inferred resource estimate of 370,000 ounces of gold.
“Exploration activities outside of the known resource area have highlighted the excellent potential for further discoveries within a 10km radius of the company’s main target,” he said.
“Results of a 400sq.km airborne gravity program are now being finalised and a major soil geochemistry program is currently in progress.”
Broking firm Hartleys said in March that Explaurum was aiming to develop an initial target resource of over 600,000oz of gold in order to achieve a development rating, with a high proportion of conversion to reserves to follow.
“Details of metallurgical recovery and process design will also be important, to the effect that recoverable ounces should exceed 450,000,” analyst John Macdonald said.
Results from metallurgical testwork are due to be released later this month, with Hartleys saying preliminary work suggested over 85% of the gold may be recovered to bullion through a process involving gravity separation and fine grind of the gravity concentrate.
While Explaurum’s rate of drilling had slowed in February due to unexpected summer rains, the company said it expected rates to increase as it ramped up to its scheduled June completion date, with 9712m of drilling completed and roughly 19,000m to go.
The company plans to release a new measured and indicated resource estimate over the project by August, with preparations for a feasibility study to follow.
Shares in Explaurum were up 9% to A8.5c in afternoon trade.. Hartleys initiated last month with a speculative buy rating and 18c price target.
