Emerging gold play Geopacific Resources has gained today on news it may have a major gold and silver discovery on its hands at its Kou Sa project in Cambodia.
Initial results from the diamond drilling program in the Prospect 181 area identified wide zones of epithermal-style, gold-silver mineralisation over a strike length of more than 250 metres.
Significant intercepts include 11.5 metres at 3.14 grams per tonne gold and 14 metres at 109.48 grams per tonne silver.
Mineralisation remains open at depth and along strike in both directions. True widths have yet to be determined but appear to be in excess of 40 metres. “This discovery continues to highlight the exploration potential of Kou Sa, in addition to the existing gold and copper resource,” Geopacific managing director Ron Heeks said.
“Making a new discovery in an unexplored area is an excellent result and with drilling now complete, we look forward to the results from the remaining holes in the program.
“The unusually wide zones, intense alteration and wide-spaced surface results suggest the potential for a big system in the area.”
An exploration program including soil geochemistry, rock chip sampling and geological mapping was undertaken to identify soil geochemical anomalies.
Several large silicious zones were identified from anomalous gold and silver rock chip samples. Diamond drilling targeted surface results, intersecting wide zones of near-surface mineralisation that shows intense alteration and classic epithermal textures.
Exploration identified the presence of several additional areas of surface silicification which may hold similar potential to this discovery, for the Kou Sa project.
Get your Free Copy of THE PICK - Australia's Premier Resources Sector Investment Magazine - direct to your inbox...
The 2,320-metre diamond drilling program is now complete. Subsequent results are expected to provide information that will assist in defining the width of the zone.
Geopacific will carry out a full review when all results have been received.
Geopacific has explored Kou Sa for copper and gold since 2013, releasing an initial JORC 2012 compliant resource in July 2016 of 3.84 million tonnes at 0.77% copper, 0.66gpt gold 5.27gpt silver for 29,500 tonnes copper, 81,800 ounces gold and 651,000 ounces silver.
Economic studies indicate the potential for an open pit mining operation with a simple flotation plant to produce a copper-gold-silver concentrate.
The project benefits from low costs, impressive logistics and flat topography.
Shares in the company (ASX:GPR) was trading 4% higher at 2.6c in afternoon trade.