King River (ASX:KRR) delineates high-grade gold at Tennant Creek, shares jump

Highlights

• King River Resources is riding high after rock chip grab samples and RC drilling at the Tennant Creek project delivered encouraging outcomes.
• The rock chip sampling operation at the Kurundi prospect returned high-grade gold results of up to 49.5g/t Au.
• RC drilling has delivered high-grade gold assay results along with very high copper and silver values.
• KRR plans further drilling over the Kurundi region to extend the current known zones and discover new mineralised zones.

King River Resources (ASX:KRR) has reported exploration success and delivered new discoveries on its Tennant Creek Project located in the Northern Territory. The Kurundi prospect has been the centre of gold exploration activities at the project.

The recently conducted rock chip sampling operation has delivered high-grade gold results up to 49.5g/t Au from the areas surrounding the Kurundi prospect. Moreover, the rock chip sampling operation has highlighted new drilling targets at the prospect.

Meanwhile, the RC drilling over the prospect has returned high-grade gold intersections as well as high-grade copper and silver values.

Triggered by the update, KRR shares edged up by over 6.2% to trade at AU$0.017 midday on 1 September 2022.

Reconnaissance exploration indicates gold potential

Map showing locations for rock chip sampling (Image source: KRR update, 1 September 2022)

The above map shows the areas on Kurundi that have returned encouraging results from reconnaissance exploration. High-grade rock chip grab samples from the Tarragans, Millers and Priesters prospects returned significant gold values, while new gold prospects were also identified.

Reconnaissance rock chip sampling over Tarragans resulted in high-grade gold discovery from a sub-vertical fault zone with quartz veining and strong iron alterations. KRR identified three new mineralised zones and structures.

At Priesters, reconnaissance exploration delineated historic diggings and vein outcrops. KRR interpreted that the vein structure continues under shallow alluvial cover to the south of those diggings.

Both the areas, Tarragans and Priesters have not witnessed any drilling so far.

RC drilling delivers high-grade gold, silver and copper values

KRR carried out RC drilling over the Kurundi Main prospect in the first half of 2022. A total of 34 holes for 1,233m were drilled. The drilling intersected a 1-5m quartz vein within a broader shear structure.

The drilling operation has returned high-grade gold intersections with one of the holes TRC019 returning 7m @ 6.35g/t Au from 25m, including 2m @ 21.3g/t Au with 1m @35.26g/t Au.

Other key results included

• TTRC040: 5m @ 3.84g/t Au from 22m including 2m @ 7.82g/t Au with 1m @ 9.99g/t Au
• TTRC041: 6m @ 4.77g/t Au from 29m including 3m @ 9.28g/t Au with 1m @ 14.76g/t Au
• TTRC042: 6m @ 3.58g/t Au from 8m including 1m @ 17.04g/t Au

The drilling operations over the Kurundi prospect have established that structures and mineralisation are continuous at the depth, boosting confidence in the multiple gold targets identified on the prospect so far.

KRR also conducted multielement tests on drill samples, highlighting:

The drilling campaign has delineated gold mineralisation beneath the main and northern workings and along strike between these two historically exploited sites. Given the persistence of the structure and the shallow depths of the drilling so far, there is good potential for further exploration both along strike and at depth.

Additionally, there are signs that more than one mineralised structure exists, creating an opportunity for a nearby finding of additional mineralised structures.

What’s next?

According to KRR, the area is sparsely explored, and the recent drilling and rock chip sampling data are encouraging to take further exploration activities in the project area. In the Tennant Creek region, the company holds several exploration licences covering around 7,000km².

KRR plans further drilling campaigns over the project tenure to focus on depth extensions as well as extensions to the main zone and the main workings to the north and south. The company expects to extend the current known zones as well as discover new mineralised zones at depth and along strike.