Gullewa associate strikes gold in South Darlot in WA

Friday, November 09, 2012 by Proactive Investors

Gullewa associate strikes gold in South Darlot in WA

Gullewa (ASX:GUL) associate TSX listed Central Iron Ore has hit significant gold anomalies at its South Darlot gold project in Western Australia.

GUL has a 36.1 stake in Central Iron Ore.

Test results from the first 14 holes showed significant gold intercepts of 4 metres at 50.3 grams per tonne, 7 metres at 27.1 gram per tonne and 4 metres at 23.2 grams per tonne.

The results which included an intercept of 1 metre at 159 grams per tonne gold support historical and earlier work conducted on the project area.

The latest drilling campaign focused on the first 2 of the 31 gold targets identified in the South Darlot project area with 24 targets in the Barrick Joint Venture tenements and the rest in Central Iron Ore tenements. 

Central drilled 5 holes for resource estimate, 2 holes for metallurgical test work and 1 diamond tail and 1 hole for geotechnical test work at its Endeavor prospect comprising a total of 554 metres of drilling.

The test results from this prospect confirm earlier historical drilling results that returned 4 metres at 70.6 grams per tonne and 8 metres at 23.6 grams per tonne of gold.

Drilling at the Mermaid Prospect included 3 reverse circulation drill holes for resource definition and 2 holes for metallurgical test work. Historical drilling results at Mermaid have also returned significant gold deposits with grades ranging between 13 grams per tonne to 348.9 grams per tonne.

The Endeavor and Mermaid prospects are part of the Barrick JV and the significant gold finds means that Central has substantial cost and time advantage of 18 to 24 months.

The Barrick JV tenements are southwest to Barrick's Darlot gold mine and Central will be evaluating targets at the tenements over the next 12 months.

With the completion of the current drilling program spend, Central would have earned a 51% interest in the Barrick JV tenements with an option to earn a further 19% by spending an additional A$250,000.