Spectrum rings the till again at Penny North

Spectrum Metals has encountered its highest gold grades yet outside of the historical Penny North deposit with exploratory drilling snagging a 4 metre zone grading at 11.1 grams per tonne gold from 195m downhole that includes a metre grading 41g/t gold at the Magenta prospect.

Magenta is located 1.5 kilometres north of Penny North and has provided Spectrum with plenty of encouragement that Penny’s high-grade mineralised system appears to continue along strike.  The recently revered ASX-listed explorer and developer also said the new results demonstrate that Magenta extends to a vertical depth of about 170m.

It appears that Magenta is not closed off at depth either and assay results from the company's latest exploration drilling campaign remain outstanding.

Managing Director, Paul Adams said:

“Although exploration in these areas is at an early stage, we are particularly encouraged by what we are seeing, including the 41.0 g/t gold intersection at Magenta at depth.”

In addition, early indications of an interesting MLEM anomaly in the “Gap Zone” along the Penny West Shear indicate a high-priority target for our drilling early this year.”

Lat year Spectrum hit market radars with an uber-successfull drilling campaign at Penny North and the latest results 1.5km north of that discovery tend to indicate that this project can not yet be fully defined. 

Spectrum now has its rigs back out in the field and is looking to boost its already impressively high grade resource even further.

Youangarra is one prospect that has been the recipient of some recent drilling at the project by Spectrum, with the first batch of assays revealing grades such as 3.80g/t over 2m from 65m downhole, including a higher-grade, single metre at 6.91g/t gold. 

Spectrum has also ploughed a couple of RC holes into the Columbia prospect in an attempt to extend the known gold mineralisation there with results still outstanding. Historical results from Columbia include 6m at 8.06g/t from a shallow 28m downhole.

Importantly, one of the discovery holes at Penny North include a 14-metre intercept grading 14.4g/t gold – a hole located 40m down-dip from a historical hole that returned a narrow, but anomalous metre interval grading 6.47g/t gold.

The new intersection from Youangarra and historical hits from Columbia, are open at depth and crucially, look to have similar characteristics to the Penny West high-grade lodes mined historically from an open pit to the south, also inferring it may be part of the same mineralised system.

Penny West produced 85,000 ounces of gold from 121,000 tonnes grading a whopping 21.8g/t gold during 1991 and 1992.

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