Eagle Mountain Mining Limited (ASX: EM2) announced its exploration update over the completion of its phase 1 drilling. The drilling was completed at the northern end of the Pacific Horizon, targeting both volcanogenic massive sulfides (VMS) and quartz-carbonate breccia mineralization.
Its continued execution of the Silver Mountain strategy resulted in the completion of eight planned and two unplanned drill holes at the Pacific Horizon for a total of 2,640 meters. Assays are yet to be received for two of these drill holes. [optin-monster-shortcode id="swikrbu1d9j9aq0o4cko"]
A detailed geochemical analysis will be conducted once all the Pacific Horizon assays have been received. The second-round drilling at the Pacific Horizon will be based on the geochemical analysis information.
The diamond drill rig has now moved and commenced drilling at the southern extension of the Pacific Horizon. The company has recently appointed Australian geological consultant Dr. Dave Compston to provide additional geological strength to the in-country team at Silver Mountain.
As per the company management, the geological results obtained from the first round of drilling at Pacific Horizon have provided it with great confidence moving forward. While it hasnât made a specific discovery in the first pass, the company is excited about the level and style of alteration that has been encountered. Once the geochemical analysis has been completed, it will better understand the style, phases, and controls on mineralization along the Pacific Horizon. In turn, this should lead to more successful follow-up drilling. In the interim, it has shifted its focus to the Red Mule and Scarlett prospects, both of which are rated more highly than the Pacific Horizon prospect.
The Pacific Horizon hosted several old mines, which included the VMS and quartz-carbonate breccia potential styles of mineralization. Given that this potential mineralization lies within the patented claims, minimal permitting was required, and the company commenced phase one of the drill programs at Silver Mountain in late September 2018 near the historic Pacific Mine (refer ASX releases 5 October 2018; 14 November 2018 and 14 December 2018).
The drill holes targeted both the quartz-carbonate breccia and Proterozoic Massive Sulphides styles of mineralization. Quartz-carbonate breccia samples collected from the old mine dumps returned assays up to 11.1% Cu and 10.7 g/t Au.
The Company is continuing to pursue the detailed corporate strategy established before listing in March 2018, which provided the framework to explore the complex geology at the Silver Mountain Project systematically.
In a previous announcement, Eagle Mountain released half-yearly result report for the year ending December 2018. It reported other revenue of $20,924 from continuing operations. Its loss after tax stood at $3,538,989 due to the increase in exploration and evaluation costs, administration costs, and employee expenses.
At the time of writing (06 March 2019, AEST 01:38 PM), Eagle Mountainâs share traded at $0.120 down 25% during daysâ trade with the market capitalization of ~$14.8 Mn. Its loss per share stood at 0.038 AUD. Its 52 weeks high has been noted at $0.5 and 52 weeks low at $0.115. Its absolute return for 3 months is -36% as on March 5, 2019.
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