The Youanmi gold project near Mt Magnet in Western Australia’s Murchison region has coughed up more high-grade results to bolster the confidence of Venus Metals and its joint venture (JV) partner Rox Resources in upgrading the project’s mineral resource estimate.
Highlights from the JV’s third batch of assays from a resource development (infill) drilling program include 6.38m going 4.45 grams per tonne gold from 381.84m, housing 2.56m at 8.26g/t gold from 381.84m, in addition to another 5.96m at 5.34g/t gold from 314.21m.
The program is focused on the Link and Kathleen areas of Youanmi and is designed to convert inferred resources to the higher-confidence indicated resource classification.
The JV says assays are boosting its confidence in the geological interpretation at Youanmi, boding well for improving confidence as part of future resource updates, in addition to investigating the down-dip potential of the ore zone.
Youanmi, about 500km north-east of Perth, has a mineral resource estimate of 27.9 million tonnes at 3.57 per cent gold for 3.12 million ounces. Indicated resources are at 12.13 million tonnes at 3.32 per cent gold for 1.3 million ounces, while inferred resources are 15.77 million tonnes at 3.75 per cent gold for 1.9 million ounces.
The latest Youanmi assays come from a 24,000m resource development and near-mine exploration drilling program. The drilling at Link has been targeting an upgrade of the inferred resource over a strike length of 460m, between 230m and 475m below surface.
Significantly, the assays include the deepest holes drilled to date at Link and the results have pointed to the potential for future resource extensions at depth.
The JV also reports reverse-circulation (RC) drilling is underway at the new Paddy’s Lode discovery at Youanmi to test continuity up-dip and for supergene mineralisation. But the resource development drilling at Link and Kathleen is now complete.
Venus and Rox share a series of JVs. Youanmi is owned 30 per cent by Venus and 70 per cent by Rox.
In July, Venus expects to wrap up a deal where it will relinquish its gold rights at Youanmi to Rox, in addition to all of its gold interests in its other JVs with its partner.
Venus will undertake an in-specie distribution of 55 million Rox shares to its shareholders, while retaining another 55 million Rox shares, which will be subject to 12 months of voluntary escrow.
More assay results are pending from the recent diamond drilling programs at Link and Paddy’s Lode. Together with assays from RC drilling at Paddy’s Lode, targeting shallow extensions of the discovery and potential supergene mineralisation, investors will be licking their lips in anticipation of strong news-flow from the company in coming weeks.
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By Mark Irving
