- Saturn Metals Limited (ASX:STN) has yet again received strong intersections from the drilling activity aimed at expanding the gold system at Apollo Hill.
- The Company is targeting intersections as a part of the ongoing strategy to grow Apollo Hill’s 781,000 ounces Mineral Resource.
- The results from intersections would be incorporated in the next Mineral Resource upgrade.
Saturn Metals Limited (ASX:STN) has received strong intersections from the Apollo Hill deposit within its wholly-owned Apollo Hill Gold Project.
The Company continued its drilling as a part of the ongoing strategy to grow the Apollo Hill’s 781,000 ounces Mineral Resource and expects the drilling activity to continue to expand the gold system at Apollo Hill.
Saturn previously upgraded its Mineral Resource in October 2019 and now plans to combine the latest drilling results into a Mineral Resource upgrade, pending for the end of the current year.
Strong Intersections Confirm Continuity Along the Deposit’s Strike
The Company received several thick and shallow intersections which further demonstrate the continuity of mineralisation over a number of hanging wall positions along the strike length of the deposit.
Image Source: Company’s Report
Some of high-grade intersections which confirm the continuity along the deposit’s strike are as below:
- The drill hole identified as AHRC0402 intersected 7m @ 1.78/t of gold from 153m.
- The drill hole identified as AHRC0394 intersected 6m @ 1.56/t of gold from 64m.
- The drill hole identified as AHRC0403 intersected 15m @ 1.30g/t of gold from 160m; including 9m @ 1.95g/t of gold from 166m.
- The drill hole identified as AHRC0516 intersected 8m @ 1.13/t of gold from 121m; including 3m @ 2.46 /t of gold from 121m.
Likewise, some intersections on the Apollo Hill main zone improve mineralisation, and some of the significant intersections are as below.
- The drill hole identified as AHRC0157R intersected 20m @ 1.08/t of gold from 235m; including 6m @ 2.54/t of gold from 245m.
- Also, the same drill hole intersected 10m @ 1.46/t of gold from 261m; including 7m @ 1.95/t of gold from 261m.
The strongest intersection received by the Company is of 8.25g/t of gold from the drill hole AHRC0513. Rest of the intersections range from 0.94g/t to 2.34g/t of gold.
As per the miner, 29 out of 30 holes demonstrated intercepts above Apollo Hill resource’s cut-off grade and 23 holes witnessed mineralisation above the average resource grade.
- The current intersections, along with several such results disclosed by the miner in August, September, and October, provide scope for resource extension, which STN would include in the Mineral Resource upgrade.
The most important observation around the recent intersections is that a majority of them sit outside the current Mineral Resource of 24.5 million tonnes of the prospect. The current Mineral Resource contains an average grade of 1.0 g/t of gold, containing 781,000 ounces of gold.
Also, as the current intersections are outside the existing Mineral Resource, they represent considerable potential for increasing the size and quality of the gold system at Apollo Hill.
The Market Reaction
The market seems to be factoring in the recent results announced by the Company, with the stock showing a consistent uptrend from the level of $0.280 (intraday low on 30 March 2020).
Also, the stock has gained momentum from its recent low of $0.670 (intraday low on 2 November 2020) to the present high of $0.790 (1:28 PM AEDT), marking a price appreciation of ~ 17.91 per cent in just few trading sessions.