Kingsgate Consolidated Ltd (ASX: KCN) is pleased to announce the initial results from the current RC drilling program at its Nueva Esperanza project in Chile. The new drilling has intersected exceptional gold and silver mineralisation to the west of the existing Chimberos Pit, outside the current resource boundary.
The following intersection in drillhole ECHR-25 is one of the best intersections ever recorded by Kingsgate in any of its operations and projects with:
- 170m @ 2.79g/t gold & 82g/t silver (4.16g/t AuEq60) from 58m, including 36m @ 8.63g/t gold & 177g/t silver (11.57g/t AuEq60) from 168m.
The hole, drilled to follow-up ECHR-19, intersected a broad zone of intensely silicified breccia which, together with the results from ECHR-19, suggests the potential for a high grade feeder structure as shown in Figure 1. Individual one-metre intervals for the bonanza zone in ECHR-25, which are shown in Table 2, indicate the intensity of mineralisation. Further significant results currently available include:
- 35m @ 3.40g/t gold & 33g/t silver (3.95g/t AuEq60) from 204m including 6m @ 15.36g/t gold and 52g/t silver (16.23g/t AuEq60) from 218m in ECHR-19;
- 19m @ 4.16g/t gold & 77g/t silver (5.45g/t AuEq60) from 195m in ECHR-18;
- 17m @ 2.63g/t gold & 70g/t silver (3.80g/t AuEq60) from 153m in ECHR-19;
- 23m @ 0.18g/t gold & 274g/t silver (4.75g/t AuEq60) from 71m in ECHR-21; and,
- 32m @ 1.97g/t gold & 75g/t silver (3.22g/t AuEq60) from 173m in ECHR-29.
Thirteen out of the nineteen holes drilled so far in the current program have returned significant gold, silver and silver with gold intersections as tabled in this release.
The mineralisation identified from this drill program extends for approximately 300 metres to the west of the current Chimberos Pit, is located outside the current resource boundary and remains open at depth and along strike. Further drilling to follow up these intersections is underway and a second drill rig has been diverted to this campaign. A ground geophysical orientation survey is also underway in order to determine the most appropriate technique for identifying these targets elsewhere within the Nueva Esperanza lease area.
The geological significance of these results is still being assessed within the context of the mineralisation in the Chimberos Pit and nearby satellite prospects.
Kingsgate’s Executive Chairman, Mr. Ross Smyth-Kirk said, “These are spectacular results from this drilling program and we are satisfied that our confidence in the potential for significant growth at Nueva Esperanza is starting to be realised.”
“It is clear that the gold potential of Nueva Esperanza is growing and could significantly improve the project’s already robust economics, and;
“Kingsgate is committed to exploring this emerging and highly prospective property with the recent drilling results pointing to a potential project “game changer”.
Kingsgate Consolidated Limited
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