Junior miner Liontown surges on gold discovery
Liontown Resources surged 15% on Tuesday after it announced it hit a widespread gold assay in its first reverse circulation drill hole at the Moora Project in WA. Drilling beneath previously reported shallow air-core and auger drilling within a large gold anomaly has returned outstanding high-grade assay results.
The junior miner which currently has a market cap of around $800 million, intersected 1.6 grams per tonne gold along a 44-metre stretch of drillcore, which included 20 metres at 3.2 grams per tonne gold and four metres at 10.1 grams per tonne gold.
Further drilling is required to confirm the orientation and size of the mineralised zone; however, the result is considered to be highly significant and represents an important breakthrough in the exploration of the Moora Project.
The first deeper hole drilled at the Project has confirmed the potential for significant bedrock gold mineralisation at the newly-named Angepena Zone, where previous auger sampling and shallow air-core drilling have defined an anomalous WNW-ESE trending gold zone over a strike length of ~1km.
Potential ore grades and widths have now been intersected in two drill holes 300m apart and pathfinder geochemistry indicates that the zone may continue to the south-east for a strike length of 900m and remains open in all directions.
Liontown’s departing Managing Director, David Richards, called the intersect an “exciting moment” for the company, and one that validates its exploration approach. “It’s obviously still early days, but the data suggests the potential for a large mineralising system at Angepena that will require intensive drill testing. The fact that the shallow anomalism we have been seeing in auger and air-core drilling is directly related to primary bedrock mineralisation is a vital breakthrough that confirms that we have an emerging discovery opportunity at Moora,” he added.