If enthusiasm for gold plays is fading, as has been reported, no one has told Australian investors.
On Wednesday morning, gold and base metals explorer Carawine Resources (ASX: CWX) saw its stock price more than double in early trade after the announcement it had discovered two new high-grade gold lodes at its Tropicana North project in Western Australia.
This followed Tuesday’s stellar share performance by Lefroy Resources (ASX: LEX) after it told the ASX of a high-grade gold hit, also in Western Australia.
One hole drilled by Carawine in January at its Hercules prospect returned 37m at 5.58 grams per tonne gold.
Three separate lodes hit in one hole
This was across three lodes, beginning 84m down hole — 4m at 25.9g/t (the main lode), 3m at 22.2g/t from 101m, and 3m at 10.6g/t from 118m.
Carawine reported that additional gold intersections at other holes have extended the mineralisation along strike and at depth.
These include 3m at 15.2g/t, 3m at 15.4g/t, 5m at 10g/t and 5m at 13.1g/t.
Carawine’s Tropicana North project covers 80km of strike along the Tropicana Belt.
The company says the strike length contains strike extensions of the same and similar rock units and structures to those hosting the large Tropicana gold mine operated by AngloGold Ashanti (ASX: AGG) and IGO Limited (ASX: IGO).
Carawine’s project in the north-eastern goldfields covers 1,800 sq km, the second-largest tenement holder in the region behind AngloGold Ashanti.
Hercules shaping up as ‘major’ gold deposit
Managing director David Boyd said these initial results show the potential for Hercules to become established as a major new high-grade gold deposit “in what is shaping up as an exciting new gold project north of Tropicana”.
He said the drill results are “highly significant”.
“Multiple high-grade intersections have been returned which extend the existing mineralisation with improved grade continuity between drill holes, as well as uncovering additional parallel high-grade lodes,” Mr Boyd added.
A preliminary interpretation of the mineralisation shows multiple plunging zones which increase in strike length with depth.
Carawine notes that the mineralisation is typically associated with quartz sulphide veins.
The post Carawine Resources reports ‘exciting’ gold discovery in Western Australia appeared first on Small Caps.
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