Koonenberry Gold Limited - Quarterly Report Highlights Promising Drilling Results
KNB (KNB) Share Update July 2024 Wednesday 24th
Koonenberry Gold Limited Reports Promising Drilling Results at Atlantis and Bellagio Prospects
Koonenberry Gold Limited (ASX: KNB) has released its quarterly report for the period ending 30 June 2024, showcasing significant progress and promising drilling results at its Atlantis and Bellagio prospects.
Instant Summary:
- Completed first-ever drilling at Atlantis with 18 holes for 892 meters.
- Encountered a 25m wide zone of anomalous Cu-Au-As-Pb-Zn mineralization.
- Significant intersections at Atlantis include 3m @ 0.61% Cu and 6m @ 0.35g/t Au.
- Extended the bedrock gold zone at Bellagio to a 300m x 500m area.
- New interpretation at Bellagio suggests potential for significant mineralization parallel to the Royal Oak Fault.
Atlantis Cu-Au Prospect
During the quarter, Koonenberry Gold Limited completed its first-ever drilling at the Atlantis prospect, targeting high-grade copper and gold rock chip results and soil anomalies. A total of 18 holes were drilled for 892 meters. Despite difficult drilling conditions due to hard and silicified ground, the drilling intersected sediments with narrow intervals of malachite and up to 10% disseminated pyrite.
Although the Air Core rig was unable to penetrate to the planned depths, the drilling returned encouraging intercepts, including a 25m wide zone of anomalous Cu-Au-As-Pb-Zn mineralization. Significant intersections included 3m @ 0.61% Cu from 9m and 6m @ 0.35g/t Au and 0.57% Pb from 0m. In the last week of the quarter, a drill rig was mobilized to commence drilling the three electromagnetic conductors identified down-dip of the outcropping mineralization.
Bellagio Au Prospect
At the Bellagio prospect, Air Core drilling was completed with a total of 17 holes for 1,506 meters. This work extended the bedrock gold zone to the east and 200m to the south, now covering a 300m x 500m area. A new interpretation of the controls on mineralization indicates that previous drilling may have been sub-parallel to the strike of the system. The Central Gold Zone, which is 50m wide, remains open down dip, down plunge, and along strike to the NW and SE, parallel to the Royal Oak Fault.
Managing Director Dan Power expressed optimism about the results, stating, 'We were very encouraged by the 25m wide zone of copper mineralization intersected from surface, with results up to 0.72% Cu and 0.39g/t Au. The geological features are consistent with our Stawell-type exploration model and indicate that the right fluids have moved through the rocks.'
Forward Program
Looking ahead, Koonenberry Gold plans to resume drilling at Atlantis to test the three EM conductors and the contact between the sediments and the Bittles Tank Mafic Volcanics. At Bellagio, a high-impact drill program is being planned to test the continuity of the Central Gold Zone. Additionally, several priority targets have emerged from the Royal Oak Fault soils program, with follow-up geochemical sampling underway.
The promising drilling results at both Atlantis and Bellagio prospects are likely to positively impact Koonenberry Gold's stock. The discovery of significant mineralization zones and the potential for further exploration success could boost investor confidence and attract new investments. However, the challenges faced during drilling and the need for further testing may temper immediate market reactions.
Investor Reaction:
Analysts and investors have reacted positively to the news, with many expressing optimism about the potential for significant discoveries at both prospects. The geological similarities to the Stawell Gold mine have particularly caught the attention of industry experts.
Conclusion:
Investors should keep a close eye on Koonenberry Gold's upcoming drilling programs and the results from the continued exploration efforts. The company's strategic approach and the promising initial results indicate a strong potential for future discoveries. Stay informed and consider the long-term prospects of Koonenberry Gold as part of your investment strategy.