Palomino prospect runs out more Strickland high-grade gold

Strickland Metals’ Palomino prospect has produced more strong results, with a top new hit of 10.6m at 7.5g/t gold from 161.4m including 3m going 21.2g/t at the project that sits within Western Australia’s Yandal gold belt.

Reinforcing several other recent solid gold runs, the company’s latest reverse-circulation (RC) drilling at Palomino also threw out 9m going 2.4g/t gold from 22m and a deeper 21m intercept in the same hole at 1g/t from 76m. The Yandal project lies about 85km north-east of the WA town of Wiluna. 

Strickland views the second intercept as particularly significant as it brings to light mineralisation in an area previously believed barren and potentially extends known mineralisation by about 100m further to the north-west. It also potentially introduces a separate new shoot that may continue to surface.

Management says shallow ground near the intercept and further to the north-west is yet to be drilled. However, two other holes below that hole plunged through 20m at 1.4g/t gold from 123m including 4m going 4.9g/t and 20m at 1.7g/t from 148m – both of them piercing the same section about 40m and 70m deeper, respectively.

The deeper of the two holes appears to have penetrated the section a mere 10m to 15m above an interpreted high-grade zone that Strickland has already earmarked for drilling. It means all three of the holes with similar grades above that interpreted zone may represent a lower-grade halo to the main play.

Strickland Metals chairman Anthony McClure said: “Palomino continues to deliver excellent results. Of significance is the intersection of 9m at 2.4g/t Au from 22m and 21m at 1.0g/t Au from 76m, as mineralisation was not expected to be encountered in the lower portion of this hole. The result is outside the current Palomino mineral resource and significantly expands the mineralisation footprint, including bringing the modelled mineralisation closer to surface.”

The company views its 10.6m at 7.5g/t gold result as confirming continuity of the lode it reported last week in a diamond hole that gave up 13.7m going 6.3g/t gold from 133.4m including 3m going 20g/t. It is also a further 30m down-plunge from a second diamond hole that threw up a hit of 17m running 10.6g/t gold from 144.7m, spiced up by its included 3.5m at 15g/t gold.

The consistency of high grades shared across the two diamond holes and the latest RC intercept is encouraging, suggesting that decent grades may persist and not simply be confined to narrow high-grade veins or “nuggety” influences. Moreover, the interpreted high-grade zone indicated by the three high-grade holes has yet to be tested and remains completely open.

Strickland recently undertook an induced-polarisation (IP) survey that highlighted a strong response, indicating a potential new target. It sits on the extended Palomino mineralised structure about 600m north-west of Palomino and appears to have never been tested.

Palomino mineralisation has already been shown to be associated with pyrite and chalcopyrite, which are responsive to IP. The company believes its new target warrants further investigation and it is planning a number of holes to test it. Management is also planning further RC and diamond drilling to expand both the high-grade and oxide Palomino domains. This horse looks like it will keep running for some time before it slows for a breather.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au