PAPUA New Guinea minerals explorer Gold Mountain Limited continues to report positive results from its activities in the Highlands.
The company recently announced it has achieved further gold and platinum recoveries from its Phase 2 Bulk Sampling program at the flagship Crown Ridge Gold Project in the EL-1968 exploration licence.
The company also reported what it describes as the discovery of a significant, heavily mineralised ‘proximal float’ hard rock sample less than 20 metres from the first 125m3 bulk sampling pit, known as Pit 200.
The company told shareholders it has initially recovered over two ounces of gold (75.05g Au) and 8.71g of platinum from Pit 200 following the completion of the first large scale 125m3 test pit using a tracked excavator and processed through a portable heavy mineral test plant.
The company said that it was encouraged by the ease in which the coarse grains of gold and platinum contents from the pit were amenable to recovery using gravity processes.
Gold Mountain added that recoveries could increase extensively following an upgrade of the portable heavy mineral test plant now located on-site.
Consulting geologist/metallurgist, Tony King, said the upgraded equipment could overcome losses related to sizing.
“From the gold sizing, it is apparent that there are some losses below 0.1mm and also below 0.2mm due only to the heavy mineral processing equipment currently being used.
While the initial results are very encouraging, the Company will witness significant increases in recoveries once equipment is upgraded.
“At present, there are two types of gold in this batch of concentrate. Firstly, a richer coloured gold, which is more crystalline and often attached to quartz; typical of in situ eluvials (free gold in soil). With other gold that is lower grade, it is silvery, and occurs as flat flakes, particularly in the larger grain sizes. Some flakes are rounded, similar to alluvial gold and there is no attached quartz,” Mr King said.
The processes used to determine the free gold and platinum contents of the concentrate sample were similar to those detailed in the ASX announcement on 12 January 2017.
Gold Mountain director and supervising geologist, Doug Smith, said the company is happy with the initial results achieved.
“The gold and platinum recovered from the initial 125m3 Pit 200, and the discovery of the heavily mineralised hard rock sample adjacent to Pit 200, are both highly encouraging for the Company as we look to recommence phase 2 bulk sampling activities in the coming weeks. Recovery from free gold in the soils is continuing, and our confidence in the geology is growing daily. More and more, we are convinced that Crown Ridge will commence as a low-cost bulk mining operation with free gold in the soil occurring down to 40 metres.
“The hard rock sample recovered, albeit only a sample, clearly indicates that some proximal float has occurred, which simply means the hard rock has moved from what is likely a much larger hard rock source. The heavy mineralisation in the sample is very encouraging.”
“As well as continuing the Phase 2 bulk sampling program, GMN’s will also undertake further geological mapping and geochemical sampling in other EL’s within the Wabag tenement suite, while concurrently designing a program of further pitting in order to estimate a JORC 2012 compliant mineral resource in the near term.
“Very shortly, we expect Allender Exploration to report on further geophysical interpretations of Crown Ridge and we are eagerly awaiting these independent results and accompanying commentary. “We look forward to updating shareholders on progress of all activities as we continue to unlock Gold Mountain’s potential value,” he said.
Gold Mountain Limited also recently reported the completion of a 3D Magnetic Modelling activities and subsequent results following a recent Helimag survey programme at EL-2306 (“Abundance Valley”), EL-1966 (“Sak Creek”) and EL-1968, an extension of Crown Ridge.
The company said the results of the 3D Magnetic Modelling has indicated several potential calderas across Sak Creek, Abundance Valley and within the extension of its flagship Crown Ridge project. Gold Mountain believes these calderas have the potential to relate to an extensive porphyry system within Crown Ridge and surrounding leases. It said the results also indicated numerous, extensive shallow targets that the Company will look to explore further in the near term through a broad scale trenching programme.
Consulting geophysicist, Jim Allender of Allender Exploration, said the Helimag data set is of outstanding quality and the high-resolution recorded data has led to a very detailed 3D model of the survey area within Gold Mountain’s landholding.
“A profusion of shallow targets contained within an interpreted volcanogenic environment is evident. Extensive shallow cover and mineralised weathered alteration surface layer (as evidenced at Crown Ridge) is anticipated to continue regionally in the survey area. The survey results provide the Company with a highly prospective exploration environment,” Mr Allender said.
Gold Mountain’s Douglas Smith said the results to date are very encouraging.
“The potential of several large calderas across the vompany’s tenement suite provides GMN with a range of targets to further explore which will give us a deeper understanding of possible project scale which can be unlocked to increase shareholder value.
“We look forward to exploring what has the potential to be a world-class deposit in a known region of gold producing mines and updating shareholders on our progress as it becomes available,” Mr Smith said.