Robust Results at Anglo Australian’s Mandilla Gold Project, Stock Soars

  • Sep 24, 2019 AEST
  • Team Kalkine
Robust Results at Anglo Australian’s Mandilla Gold Project, Stock Soars

Producing almost 19 useful minerals in significant amounts, Australia has over 350 operating mines, and the mining activity occurs in all the Australian states. Adding flavor to the rich mining menu in the country is Perth-based exploration company, Anglo Australian Resources NL (ASX: AAR), which is best known for its wholly owned projects:

  • Feysville Gold
  • Mandilla Gold
  • Koongie Park Gold
  • Carnilya Hill Gold
  • Koongie Park Base Metals

AAR has recently garnered positive investors’ sentiment, after receiving excellent results to- date from the RC drilling at Mandilla East, which was conducted using the new sampling and assaying technique. Let us acquaint ourselves with the details:

The RC Drilling Campaign

On 19 September 2019, Anglo Australian Resources notified that it had received a robust progress report at the Mandilla Gold Project in WA, on its current reverse circulation drilling campaign at the Mandilla East Prospect. Post a successful diamond drilling ‘proof of concept’ at Mandilla, AAR had recently commenced a new RC campaign in September, planned to encompass 31 holes for an average depth per hole of approximately 175 metres (23 at Mandilla East on 40 x 40 metre spacing and 8 at Mandilla South on 80 x 40 metre spacing).

The Mandilla Project (Source: AAR’s Report)

As on date, 20 holes have been completed at Mandilla East at an average depth per hole of 180 metres, which is significantly deeper than the previous drilling at the Prospect. One-metre intervals have been sampled, and assay results from 8 holes have been received based on the photon technique using 500-gram splits.

The Results

The key results are listed below, with those exceeding 100 grams time metres highlighted in blue:

The results confirm a steeply west-dipping mineralised envelope of typically 70 metres width while mineralisation remains open along strike to the north-west for up to 500 metres, and open, albeit with lesser potential, to the south-east.

Moreover, the mineralisation extends significantly deeper than modelled in the current 38,000 ounces Mandilla East Inferred Resource, with further drilling required to test how deep mineralisation extends.

The company further notified the below:

  • High-grade mineralisation, known from previous drilling, would extend along strike to the north-west of the interpreted Resource boundary;
  • Gold associated with bedrock syenitehosted mineralization at Mandilla East might continue for a similar distance of 500 metres, with northernmost Mandilla West palaeochannel mineralization continuing for at least 500 metres to the north of the current Mandilla East resource boundary;
  • Rock chips from the current campaign from holes drilled to the south of the Mandilla East boundary contain visually less quartz veining, particularly in MDRC122, and assay results show there to be less gold mineralisation;
  • Gold distribution was closely associated with zones of quartz veining in the granite, surrounded by pale coloured alteration comprising albite, sericite, chlorite and carbonate, together with blebby pyrite;
  • Significant enclaves several metres wide of essentially unmineralized granite occurred within the bulked intersections. There is a potential for these unmineralized enclaves to be mined as waste, thus boosting the grade of mill feed in a future open pit mining scenario;
  • The exact controls on quartz vein distribution is uncertain, but typically this type of gold mineralised system is linked in three dimensions via a fault/vein network or ‘mesh’;
  • A strong ‘nugget effect’ exists at Mandilla East, given the variable distribution of quartz veins, together with the presence of coarse gold

Panned gold of up to 0.5 mm at a depth of 75 metres from MDRC123 (Source: AAR’s Report)

A brief history

The Mandilla Gold Project is on the west margin of a porphyritic granitic intrusion, Mandilla Syenite, which has a syenite-monzonite composition, as per recent petrology. From 2006 to 2007, the company mined approximately 23,000 ounces of gold at a recovered grade of approximately 7.5 g/t Au from two shallow open pits at Mandilla West, targeting paleochannel gold deposits, the gold likely sourced from in-situ mineralized quartz vein deposits located nearby.

At Mandilla East, the company has previously identified a bedrock Inferred Resource, based on a low tonnage, high grade interpretation, of 357,000 tonnes at 3.3 g/t Au for approximately 38,000 contained ounces. The previous RC drilling upon which this Resource was based only penetrated from typically 20 to 60 metres into fresh rock and did not adequately define the depth extent of mineralisation at this location.

At Mandilla South, AAR has previously identified a two-kilometres-long mineralised trend with peak gold value exceeding 5 g/t Au over a strike length of approximately 300 metres. Bed-rock gold mineralisation is also known to be present.


AAR has further decided to extend the current RC drilling campaign with an additional 10 holes, located to test for both north-west and south-east extensions of the Mandilla East mineralised trend, for an aggregate 1,500 metres. Moreover, the north-west extension would be tested for an additional 400 metres which, would increase the known gold mineralised strike length at Mandilla East to at least 800 metres, if successful.

Besides, AAR is planning to shortly commence (as soon as an appropriate drill rig becomes available) the drilling of 60 shallow RC holes for an aggregate 3,600 metres, targeting other gold mineralisation at Mandilla, to test the following:

  • The 500 metres gap between Mandilla East and Mandilla South Prospects which was ineffectively drilled previously;
  • Known areas of shallow high-grade gold mineralisation in the vicinity of the previously mined Mandilla West palaeochannel;
  • Supergene and shallow primary gold mineralisation potential in several areas of known gold anomalism outside of the main trends.

Mr. John L C Jones AM, Chairman of Anglo Australian Resources NL said,

Share Information

By the close of trading on 24 September 2019, the AAR stock was trading at A$0.092, soared up by 1.1 per cent, with a market cap of A$31.5 million. The stock touch new 52-week high of A$0.097 in today’s trading session. In the last 6 months, the stock has generated a return of 42.19 per cent.


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