Crater Gold Mining has announced continued encouraging results from diamond drilling at the High Grade Zone (HGZ) project at Crater Mountain. The HGZ project is earmarked to commence gold production subject to the outcome of a mining lease application.

The key outcome of the results received to date is that they highlight the very strong correlation with the geology and grades encountered directly up to 60 metres above in the underground development. Further excellent results are all in the planned mining zone.

Drilling confirms a broad mineralized zone hosting narrow high grade structures over a strike currently of about 60 metres and down dip of about 90 metres. The best result is 0.5 metres from 48.5 metres @ 191 grams/tonne gold. Other results include 1.0 metre from 33 metres @ 5.85 grams/tonne, and 55 metres from 17 metres @ 1.02 grams/tonne, including 1.0 metre from 71 metres @ 11.6 grams/tonne.

Crater Gold’s managing director Greg Starr says, “We are very encouraged by these ongoing HGZ results because we see strong correlation between results returned in the underground development and the drill holes.

“This gives us confidence that the high grade structures, although narrow, are so far showing continuity of the mineralized zone to depth which will facilitate more detailed modelling and mine planning.”

Crater Gold began diamond drilling at the HGZ in early March 2014 using an underground drill rig whose primary function is to follow extensions of identified gold-bearing structures.

The current drilling program incorporates a series of angle holes targeting below the underground workings of the exploration adit. The initial drilling is from the surface and the rig will then move underground to drill from specially prepared drill platforms.

The drilling program is designed to confirm immediate strike and dip continuity of narrow high grade structures encountered within a coherent zone in the underground exploration development.

The company also continues to progress its Mining Lease Application process in consultation with the Papua New Guinea Minerals Resources Authority and the Department of Environment and Conservation. The application covers an area of 1.6sqkm and the commencement of mining will all be underground. www.cratergold.com.au

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