Carnaby Resources Initiates Gold Exploration Drilling in Pilbara
CARNABY RESOURCES LIMITED (CNB) Share Update September 2024 Tuesday 24th
Carnaby Resources Begins Gold Exploration Drilling in Pilbara
Carnaby Resources Limited (ASX: CNB) has commenced a new gold exploration drilling program in the Pilbara region of Western Australia, aiming to uncover potential gold deposits in a previously unexplored area.
Instant Summary:
- Carnaby Resources starts maiden gold exploration RC drilling at Mount Grant Prospect.
- Drilling targets a structural corridor 100km from De Grey Mining's Hemi gold deposit.
- The 5-hole RC drilling program is 50% funded by the WA government through the EIS award.
- Initial drilling has intersected favorable host rock lithologies including altered intrusion and disseminated sulphides.
Drilling Program Details
Carnaby Resources Limited has announced the commencement of its maiden gold exploration RC drilling program at the Mount Grant Prospect in the Pilbara region. The project targets a northeast structural and stratigraphic corridor approximately 100km from De Grey Mining Limited's world-class Hemi gold deposit.
The program consists of five RC drill holes, with 50% of the funding provided by the Western Australian government as part of the Exploration Initiative Scheme (EIS) award. The total cost of the drilling program is estimated to be around $100,000.
Geological Context
The Mount Grant tenement is strategically located on a major structural and stratigraphic boundary between the older East Pilbara granite terrain and the younger De Grey Supergroup, which includes the Mallina Basin. This area is completely masked by shallow cover and has never been previously targeted for gold exploration.
In 2020, Carnaby conducted a detailed aeromagnetic survey that highlighted several potential Hemi-style intrusions. The first drill hole completed over the weekend intersected shallow cover and favorable host rock lithologies, including an altered intrusion and disseminated sulphides.
Initial Results and Expectations
Managing Director Rob Watkins expressed excitement over the potential of discovering a new gold system in this unexplored greenstone belt. He noted that the first drill hole has confirmed the presence of shallow cover and intersected promising lithologies.
Assay results from the drilling program are expected to take approximately four weeks to be received and reported. The company is optimistic about the potential outcomes and looks forward to advancing the Mount Grant Prospect within the Mallina Gold Project.
The commencement of this drilling program could have a positive impact on Carnaby Resources' stock, especially if the assay results confirm significant gold mineralization. The strategic location near De Grey Mining's Hemi deposit adds to the potential upside. Investors may see this as a low-cost, high-reward opportunity given the government's funding support.
Investor Reaction:
Analysts are likely to view this development favorably, considering the potential for a new gold discovery in a previously unexplored area. The proximity to the Hemi gold deposit and the initial positive geological indicators could drive investor interest and confidence in Carnaby Resources' exploration strategy.
Conclusion:
Investors should keep an eye on the upcoming assay results from the Mount Grant drilling program. The results will provide crucial insights into the potential of this new exploration area. Carnaby Resources' strategic focus on both the Greater Duchess Copper Gold Project and the new Pilbara drilling initiative positions the company for potential growth and discovery.