Si6 Metals Launches Drilling Program at Monument Gold Project
SI6 (SI6) Share Update November 2024 Wednesday 6th
Si6 Metals to Begin Drilling at Monument Gold Project
Si6 Metals Limited (ASX:SI6) is set to commence a significant drilling program at the Monument Gold Project in November 2024, targeting the promising Fred’s Well prospect in Western Australia's Laverton Gold District.
Instant Summary:
- Drilling to commence at Fred’s Well prospect within Monument Gold Project.
- Approximately 1,700 meters to be drilled, including 25 aircore and 2 reverse circulation holes.
- Fred’s Well located along a 30km structural trend with historical high-grade gold intercepts.
- Potential to upgrade existing 154koz gold resource at Monument.
- Drilling contractor Prospect Drilling secured for November 2024 start.
Drilling Program Details
Si6 Metals Limited is preparing to embark on a new drilling initiative at the Monument Gold Project, specifically targeting the Fred’s Well prospect. This area is part of the Laverton Gold District, known for its rich deposits and successful mining operations. The upcoming program will involve drilling approximately 1,700 meters, consisting of 25 aircore and 2 reverse circulation holes. The aim is to explore a 30km structural trend that has already shown promising results in previous explorations.
Fred’s Well has yielded historical drill intercepts with significant gold grades, including 24 meters at 3.24g/t Au and 8 meters at 2.09g/t Au. These results suggest a high potential for further mineralization, which the new drilling program aims to confirm and expand upon. The program will focus on infilling 370 meters out of a 770-meter mineralized strike, testing the depth of previously drilled areas, and exploring potential extensions.
Strategic Importance
The Monument Gold Project covers an area of 232km² and is strategically located near other major gold mining operations, such as Genesis Minerals' Mt Morgans Project. This proximity provides Si6 Metals with a strategic advantage in tapping into the region's mineral wealth. The current JORC-Inferred Resource at Monument stands at 154koz Au, which the company hopes to upgrade through this new drilling effort.
Geological Context
The geology of Fred’s Well is complex, featuring a mix of mafic, ultramafic, shale, chert, and felsic porphyry intrusive lithologies. The gold mineralization is associated with sheared lithological contacts, particularly between sediments and ultramafics. Previous drilling results have highlighted the potential for significant mineralization along these contacts, with elevated levels of associated elements such as silver, arsenic, and copper, indicative of hydrothermal processes.
The initiation of this drilling program is a positive development for Si6 Metals, as it could lead to an upgraded resource estimate, enhancing the project's value. The potential discovery of new mineralized zones could significantly boost investor confidence and positively impact the company's stock price. Given the project's location in a prolific gold district, successful results could also attract interest from larger mining companies.
Investor Reaction:
Analysts are likely to view this announcement favorably, given the historical success of the Laverton Gold District. The potential for an upgraded resource estimate and the strategic location of the project are key factors that could drive positive investor sentiment.
Conclusion:
Investors should keep a close eye on the progress of the drilling program at Fred’s Well. Successful results could lead to an upgraded resource estimate and potentially increase the project's valuation. Si6 Metals' strategic positioning within the Laverton Gold District presents a promising opportunity for growth.