Kingsgate Consolidated Ltd (ASX: KCN) is pleased to announce new assay results from the ongoing drilling program at its Nueva Esperanza project in Chile. The new drill results continue to intersect further significant gold and silver mineralisation to the west of the existing Chimberos Pit with ECHR-50 located approximately 350 metres to the west of the current resource boundary.
The latest results include:
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15 metres @ 7.13g/t gold & 103g/t silver (8.8g/t AuEq60) from 150 metres in ECHR-50;
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20 metres @ 5.18g/t gold & 84g/t silver (6.6g/t AuEq60) from 118 metres in ECRH-42;
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37 metres @ 3.27g/t gold & 52g/t silver (4.1g/t AuEq60) from 180 metres in ECHR-24;
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22 metres @ 2.04g/t gold & 23g/t silver (2.4g/t AuEq60) from 183 metres in ECHR-41; and,
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13 metres @ 1.92g/t gold & 71g/t silver (3.1g/t AuEq60) from 143 metres in ECHR-46.
Hole ECHR-25, that intersected the spectacular result of 170 metres at 4.2g/t AuEq60, announced to ASX on 27 October 2014, has now been extended from 232 metres to 430 metres with diamond drilling. Preliminary logging indicates significant zones of silicification and argillic alteration with abundant proportions of pyrite and copper mineralisation, including chalcopyrite and chalcocite, of hydrothermal origin (see Photo 1 below).
The mineralisation continues to remain open at depth and along strike and shows remarkable consistency. Further drilling to follow up these intersections is underway with two drill rigs working on double shifts.
Note that almost all the significant intersections reported to date comprise assay values consistently close to the average grade of the overall intercept with almost no extremely high grades to potentially bias the result. This characteristic will have a positive impact on the eventual resource estimation and corresponding assessment of contained metal for this deposit.
Approximately 6,000 metres have been drilled to date in the current program since late August. This program has been recently expanded by a further 10,000 metres to follow-up extensions within the Chimberos gold and silver mineralisation, including re-entering several holes that finished at depth in mineralisation.
A ground magnetics survey was recently completed over the current exploration zone and early interpretation indicates possible structures and signatures consistent with deep intrusive bodies.
The ground geophysics suggests that the system could be open further to the west and the survey is being extended in that direction and also the geophysical anomaly extends to the south.
Kingsgate's Executive Chairman, Mr. Ross Smyth-Kirk said, "The continuation of these strong results from this drilling program is extremely satisfying and is increasing our confidence in the potential for significant growth at Nueva Esperanza."
"The importance of the growing gold potential of Nueva Esperanza should not be underestimated as it is likely to have a significant impact on the ultimate development."
Ross Smyth-Kirk
Executive Chairman
Kingsgate Consolidated Limited