New Murchison Gold (NMG) has reported high grade gold from its Lydia gold project in Western Australia, reinforcing the project’s potential as a production pipeline for the company’s Crown Prince mine.
Thirty three holes were drilled in total for over 2900 metres with high-grade gold intercepts including 3m at 32.9 grams per tonne (g/t) of gold from 46m (including 1m at 62.4 g/t of gold) and 9.1m at 10.3 g/t of gold from 89m (including 1m at 24.6 g/t gold).
Results from recent drilling at the site, located 800 metres west of Crown Prince, helped identify greater gold mineralisation in the Lydia shear zone.
It has also extended the known strike and depth of the main mineralised structure at the site.
This, the company said, is geologically comparable to that of Crown Prince – which is forecast to produce 140,000 contained ounces over an initial 30-month open pit mine life.
“We are very pleased to provide this exploration update including high grade results for the Lydia gold prospect. Lydia sits on a granted mining lease very close to the Crown Prince operation,” NMG chief executive officer Alex Passmore said.
“We believe we can leverage off existing infrastructure (offices, maintenance facility, crusher, and sampling preparation facility) to bring Lydia online relatively quickly.
“NMG is working towards including Lydia into its resources and reserves inventory.”
It’s understood next steps at Lydia include updating the mineral model, using the results to estimate a JORC-compliant resource, refining the pit design and completing more drilling at the Lydia South and Lydia East areas.
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