Vertex Minerals Limited (ASX: VTX) has received high-grade gold assay results from the Red Hill Project in NSW.
The company has received its first assay results from the 1,500m diamond drill programme at Red Hill. Drilling is being completed by specialist contractor “The Drillers” under the supervision of the Company’s own geologists.
The results confirm historic drilling at Red Hill and has identified mineralisation at surface. Importantly the new information is providing data on resource extensions. The mineralisation demonstrates significant widths from surface which the Company believes is amenable to open pit mining techniques.
The Red Hill drill programme aims to increase the mineral resource within 75m of surface, which will provide the foundation of a low-risk production plan to restart processing operations at Hill End. The planned 1,500m diamond core drill programme is targeting the stockwork and halo zones that have the greatest potential to add significant tonnage to the resource whilst improving amenability to bulk mining methods.
The Red Hill Mineral Resource forms approximately one km of the 14km strike length at the Hill End Gold Project. The project has seen extensive historical mining, however, most of the previous workings were impeded by a high-water table. Consequently, the old workings at Red Hill are relatively shallow when compared to other areas of Hill End. Work completed in 2015 by Hill End Gold Limited (‘HEG’) culminated in a JORC 2012 resource estimate at the Red Hill Resource of 80,000 oz Au at 1.7 g/t to 150m depth.
The Red Hill metallurgy is believed to be amendable to gravity recovery methods, with previous test work reporting liberation of more than 90% of the contained gold at a coarse grind size. The project boasts an existing 100% owned and permitted processing plant. Access to this existing plant and high metallurgical recovery presents Vertex with the opportunity to develop a low-cost gold mine with a small environmental footprint.
“We are pleased to be getting immediate high grade drilling results with the first drill holes in our programme which follows up targets generated from the reinterpretation of old drill data,” Executive Chairman Roger Jackson said.
“As the programme continues we look forward adding more gold to the mineral resource for inclusion into mining studies and eventually the maiden Ore Reserve for the Project. This work will provide the foundation for the establishment of a new mine.”
See more at vertexminerals.com