Gateway Mining has launched a five-rig drilling campaign at its Yandal gold project in Western Australia after delays left only five holes completed in the six weeks following its Cowza discovery.
The exploration programme now includes two reverse-circulation rigs, a diamond rig and an aircore rig, with a second diamond rig expected to arrive later this week. The company said its two RC rigs were averaging more than 300 metres a day between them.
Gateway is using the RC rigs to investigate mineralisation along the Cowza-Celia South trend, while diamond drilling has begun at Cowza to twin the original discovery hole.
That hole produced an intercept of 41 metres grading two grams per tonne of gold, including a higher-grade nine-metre section assaying 7.5 grams per tonne.
Yandal drilling programme gathers pace
Gateway said the twin hole would provide further geological information about the orientation of the gold-bearing vein structures and help guide the wider RC drilling campaign.
The second diamond rig will be used to test possible extensions to the existing mineral resources at the nearby Horse Well deposit. An aircore rig has also returned to site to examine pipeline targets, mainly around splay structures branching from the regional Celia Shear zone.
Richard Pugh, Gateway’s chief executive, said the company had struggled to secure contractors able to work in the project’s ground conditions at suitable drilling rates.
“It has been a frustrating period for Gateway trying to source appropriate drilling contractors who can handle the ground conditions and maintain appropriate daily metreage rates. Only five holes were successfully completed in the six weeks following the discovery announcement at Cowza. We are now onto our third RC contractor, and very pleasingly we are achieving normal drilling rates -over 300 metres per day between the two rigs, on average,” he said.
He added: “We are confident we now have the exploration program fully back on track.”
Gateway reported cash reserves of $52.8 million at the end of the September quarter, giving it funding for the expanded exploration effort.
The Yandal project lies within the Yandal greenstone belt, which includes the Jundee, Bronzewing and Darlot gold mines. Gateway’s project has a reported global gold inventory of 400,400 ounces, comprising the Dusk ’til Dawn camp, with 108,900 ounces, and the Horse Well camp, with 291,500 ounces.
The acceleration follows a board reshuffle under which Pugh was promoted to managing director. The company said previous discoveries under his leadership included Haflinger, Hummer, Rubicon and Cowza, with further drilling potentially supporting a resource upgrade next year.
