Empire Resources’ (ASX:ERL) Dec quarter records strong drill assays for Penny’s Gold Project - Kalkine Media

Highlights

• Empire Resources continued to execute its exploration and corporate objectives during the December quarter.
• The company received strong gold assay results from September 2022 AC drilling, reflecting the potential for its Penny’s Gold Project near Kalgoorlie.
• During the quarter, the balance sheet was boosted with the completion of a rights issue.

Empire Resources Limited (ASX:ERL) continued to execute exploration work at its highly prospective projects during the December 2022 quarter. The major highlights of the period were strong assays from aircore (AC) drilling at Penny’s Gold Project. Moreover, the company raised AU$520,000 through a well-supported non-renounceable rights issue during the period.                  

Let us walk you through the updates from the quarter ended 31^st December 2022 as Empire advances exploration activities across its projects, particularly Penny’s Gold Project.

Strong assays from AC drilling at Penny’s Gold Project 

The company started a circa 5,000m AC drilling campaign at the project site in late August 2022 which was completed in September 2022 without incident for a total of 5,289m drilled. Anomalous and high-grade gold ±arsenic outcomes were highlighted by assays from the campaign across the prospects tested.

The company highlights that gold mineralisation at its project is interpreted to be similar to that at the Garibaldi Deposit and the Penny’s Find Gold Mine.  

Also, 1m re-split samples were collected from selected composite AC intervals >0.40g/t Au. The results of the 1m re-split sampling were received post December quarter allowed targeting subsequent drilling which was also wrapped up after the December quarter.

During the quarter, ERL received results from AC drilling at PF09 prospect. The results suggested:

• PAC22-29 - 7m @ 1.66g/t gold from 48m (EOH) including 2m @ 2.42g/t gold from 52m
• PAC22-33 - 3m @ 0.55g/t gold from 92m

Drilling at PF09 intersected basalt with a local fine spinifex texture along with zones of black shale (carbonaceous locally).

PAC22-27, and PAC22-29 to PAC22-33 – these drillholes hit anomalous gold at the fresh rock interface associated with quartz veining, +/-pyrite <2% and foliated basalt. Meanwhile, the drillhole PAC22-26 hit residual gold in saprolite.

The results received included:

• PAC22-50 - 4m @ 2.41g/t gold from 56m
• PAC22-47 - 4m @ 0.54g/t gold from 36m

Drilling hit basalt with a local fine spinifex texture similar to that intersected at PF09 along with domains of mafic schist. Anomalous gold was hit in saprolite/saprock associated with relict quartz veining, as well as at the fresh rock interface related to quartz veining and foliated basalt.  

During the quarter, ERL also received results for the aircore program at PF07 prospect. The results reflected:

• PAC22-14 - 8m @ 2.89g/t gold from 64m in including 4m @ 5.33g/t gold from 64m
• PAC22-06 - 12m @ 0.76g/t gold from 92m in including 4m @ 1.22g/t gold from 12m
• PAC22-19 - 4m @ 0.89g/t gold from 124m  
• PAC22-08 - 9m @ 0.56g/t gold from 72m (EOH)  
• PAC22-09 - 4m @ 0.65g/t gold from 84m  

Drilling intersected basaltic rocks with domains of mafic schist. Gold was hit in the regolith and in end of hole lithology associated with quartz veining and pyrite <2%.

The results received from the campaign at PF04 Prospect included 6m @ 0.92g/t Au from 48m in PAC22-63 including 4m @ 1.21g/t Au from 48m.  

Management commentary

Data source: Company update, Image source: Company update © 2023 Krish Capital Pty. Ltd.

Empire highlights that the company remains well funded with sufficient resources to continue to execute its exploration and corporate objectives.  

ERL shares traded at AU$0.007 on 25 January 2023.