Spectrum Metals Limited has recorded high-grade gold mineralisation from its maiden drilling program at the 100% owned Penny West gold project near Youanmi, WA.
In the announcement dated 30 April 2019, Spectrum Metals Limited (ASX: SPX) reported the assay results from three holes at Magenta, confirming that the high-grade structure remains open in all directions with the strike length of this new zone extended to over 100m.
The three reverse circulation drill holes at Magenta were reportedly aimed at confirming the presence of gold mineralisation down dip of previously identified but shallow mineralisation. All the three holes have demonstrated that high-grade gold mineralisation exists at either end of a 1.4km long ‘gap zone’.
The Group has also received results from three remaining holes at Penny North which confirmed the extension of high-grade mineralisation to the north by further 40m. The company told that the thick, high-grade intercepts at Penny North were discovered by following up an isolated up-dip intersection of 1m at 6.47g/t gold.
In the drilling program, several shallow RAB line to an average depth of between 40m and 50m tested the cover sequence and oxidized bedrock at approximately 200m line spacings. Low-level gold intersections on several of these lines have shown that the mineralised trend continues northward from the Penny West pit but no deep follow-up drilling was ever conducted into the fresh rock within the gap zone. The discovery of Penny North under a historical 1m intersection demonstrates the gold potential that the gap zone holds.
As per the company’s report, the mineralisation has been appearing to be hosted within a consistent north-south striking planar structure that is off-set to the west to the original Penny West structure. High-grade mineralisation remains open up dip, down dip and to the north while the southern end of Penny North has reportedly shown that the structure continues.
Currently, Spectrum is in the process of making the final preparations for the Phase II drilling program at the Penny West project. It is planned that the RC drill rig will commence drilling on site by this coming weekend and will target a number of new areas in addition to extensions to mineralisation discovered in Phase I. The company further continues to seek extensions to the Penny North mineralisation up dip, down dip and to the north into the ‘gap zone’.
New Zones to be tested reportedly include an area south of the Penny West pit at depth below previously drilled narrow intersections as well as the zone down dip and along strike at Magenta where Phase I confirmed the continuation and extension of high-grade gold mineralisation in a coherent structure below the previous drilling.
In today’s trading session, the SPX stock price has plunged 22.727% to last trade at $0.017 on 30 April 2019. Over the past 12 months, the stock has gone up by 69.23% including a massive upside of 266.67% recorded in the past three months.
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