Gold Mountain Limited (ASX: GMN) is an Australian mineral exploration and development company with substantial holdings within the fertile Gold-Copper-endowed Papuan Mobile Belt which comprises of world-class mines.
Most of the areas within the Exploration Licenses have not witnessed modern technology equipped exploration activities. However, GMN has multiple targets discovered within the license area of approximately 2,000 km2.
The Company’s current exploration is focused on four key prospects within the Wabag Project (Flagship Project), namely, Crown Ridge, Mongae Creek, Sak Creek, and K-Lam.
Over the years, Gold Mountain has made significant progress through many projects which constitute the GMN’s Wabag Project in Papua New Guinea (PNG).
Recently in November 2019, GMN completed the first hole drill at the Monoyal copper–porphyry prospect, which had commenced after a successful capital raising in late August and early September 2019.
As a part of GMN’s initial nine-hole diamond drilling programme, MCD003 is the first hole drilled into the Monoyal Prospect which is targeted at an area of anomalous copper geochemistry and located around 1 km North-West of Mongae Creek where two diamond holes (MCD001 and 002) were earlier drilled by GMN in 2018.
The drilling program was a 1,250 m diamond drilling programme at the Monoyal prospect, which is the Mongae Northwest Copper-Molybdenum porphyry prospect and is now referred to by its local name.
GMN progressed significantly in the course of the drilling programme, which includes:
- GMN completed MCD003 to a depth of 500.50 m which was earlier planned to a depth of 450 m and the hole was designed to test down dip of Trench 4 which recorded an intercept of 154 m @ 0.19% Copper
- GMN planned the hole by utilising data from the structural interpretation of airborne magnetic surveys, topographic analysis, ground geological mapping, and principal component analysis of soil geochemistry
- MCD003 intersected an interval (64.40–500.50m) of strongly fractured tonalite, with sulphide mineralisation (predominantly pyrite and chalcopyrite) occurring on fracture surfaces, in micro-veinlets and sometimes weakly disseminated in the tonalite
- GMN identified fracture fill and veinlets with a width between 1– 3 mm, occasionally up to 1 cm, and average at around ten fractures and veins per metre, with chalcopyrite, molybdenite and minor bornite been observed in many of the fractures
Results from Drilling Samples Lie Ahead for GMN
GMN states that it is challenging to estimate the average concentrations of sulphide minerals per metre, but the same is anticipated to be in the order of less than 1% on average.
Following the collection of samples, GMN simultaneously logged and sampled MCD003 with drilling up to 244m of core to date been forwarded to ALS in Townsville, Australia for assay.
With the arrival of first 85 samples in Townsville on 12 November 2019, GMN expects results for the sample batch by early December and further results are anticipated to be obtained at routine intervals.
Latest Developments at GMN
On 8 November 2019, MCD003 hole was completed with the rig now been moved to MCD004 and drilling commenced on the same in mid-November 2019 and the hole is presently at a depth of 47.50m, with a planned depth of 475m.
Figure 1 Planned Drilling, Monoyal Prospect (Source: Company's Report).
Other than the current nine-hole drilling programme, GMN has started the process to plan and design the further holes for covering a greater area at Monoyal to test the extensive copper in soil anomaly which has been identified around.
In addition to the above, GMN plans to constantly analyse the results from the current programme for obtaining assistance to define the final location for the planned holes.
Moreover, the Company is currently active in pursuing a regional exploration campaign along the highly prospective NW-SW structural corridor, extending from Mongae Creek to the Mt Wipi area, which is further subject to an Exploration License Application.
Monoyal Prospect Timeline
Monoyal Prospect’s drilling progress during the period of 2018 Q1 to 2019 Q4 is shown in the below timeline.
GMN Stock up over 1.5x in 6 Months
On 06 December 2019, GMN stock was trading at $ 0.074, with a market capitalisation of $45.13 million. The stock has delivered good returns to its shareholders, with returns of over 60% in the past six months.
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