A maiden drill program at the recently acquired Capella Gold Project in Central Queensland has returned high-grade gold intercepts for Australasian Metals (ASX: A8G). The company’s stock rallied 6.5% as the market opened.
The 1,644m reverse circulation program returned intercepts including 26m at 3.88 g/t and 2m at 33.4 g/t for gold. Typically, grades above 5 g/t are considered high-grade, according to Undervalued Equity.
“[The result] gives us further confidence in the project shaping up to be a significant high grade gold project," commented Managing Director Qingtao Zeng.
"The high grade nature has been confirmed with visible gold being panned from RC chips,” he added.
“Currently, mineralisation has only been tested to less than 100m from surface, and the grade and thickness of the mineralisation are strong," noted Zeng.
There is close to 1km strike of gold mineralisation that needs to be tested, according to the drill results. A diamond drill hole program is in the works to follow up on high grade and priority zones, and of course, at greater depths.
In the meantime, the company will review data from the maiden drill program to support a resource model for the Capella project. Further analysis and interpretation of today's results will be made available in the coming weeks.
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