A new gold zone has been discovered at White Cliff Minerals’ 90%-owned Aucu Gold Project in northwest Kyrgyz Republic. The new zone is adjacent to three zones identified at the Eastern Gold Zone in 2016.
It was identified in a bulldozer cut while clearing a drill pad and consists of quartz veining within a halo of strongly altered sandstone containing quartz, goethite, sericite and manganese oxides. This is typical of the high-grade mineralisation seen elsewhere within the Aucu deposit.
Channel sampling of this zone has identified 3 metres @ 24.8 g/t gold and 4 metres @ 6.5 g/t on the two road cuttings. In addition a rock chip sample of the same structure taken at the top of the hill had a grade of 23 g/t.
The Eastern Gold Zone now consists of four sub-parallel shear zones all containing significant gold mineralisation that will be tested via drilling over a strike length of 150 metres. Once drilling has confirmed the orientation of the structures, further drilling will be conducted to convert the gold mineralisation into a JORC-compliant resource.
The ASX-listed company has mobilised a second RC rig to site and this is expected to commence drilling the Eastern zone shortly.
Aucu currently hosts an inferred JORC resource of 1.8 million tonnes at 5.2 g/t gold for 302,000 ounces. This estimate represents a 23% increase in gold grade and also includes an inferred copper resource of 608,000 tonnes @ 0.64% for 3870 tonnes of copper.
White Cliff also intends to raise up to A$1.88 million from a 1:2 non-renounceable rights issue. The offer documents have been dispatched to eligible shareholders.
The company has also mandated the underwriter to raise up to an additional $1 million by way of a share placement at the same price, on a best endeavours basis.
The new funds will be predominately used for drilling of the flagship Aucu project and selected targets within the company’s Western Australian gold project tenement package.