JOHANNESBURG (miningweekly.com) – A third round of drilling results at Canadian gold producer Monument Mining’s Murchison gold project, in Western Australia, has confirmed the existing mineralised zones and intersected a number of isolated high-grade intervals outside of the currently defined mineralisation.

The Murchison gold property, owned by Monument’s Australian subsidiary Monument Murchison, consists of the historical Burnakura, Gabanintha and Tuckanarra projects.

The Toronto-listed group said this week that exploration and progress towards a preliminary economic assessment had continued at the Burnakura project, with 13 123 m of reverse ciculation (RC) drilling carried out.

The drilling programme was initiated in May at the Alliance and New Alliance openpit historical deposits, and had been extended to the Federal City target at the Burnakura project.

The programme was designed to validate the historical resource, increase the grade and geological continuity of the mineralisation through infill drilling, test for resource extensions and define further exploration targets.

“This work will contribute to the current scoping study to assess the economics of those areas to provide a commercial outcome within an 18-month timeframe from acquisition,” the group noted.

CEO Robert Baldock added that infill drilling had been undertaken to further define the historical resources, while extensional drilling had looked to test strike and width extensions, and exploration drilling had targeted new prospects.

“The initial preliminary economic assessment is targeting completion by March, and the  final study is expected to be completed by June.

“This study will comprise metallurgical testwork, mining engineering, environmental studies and permitting, aiming to bring Murchison into production as soon as is economically viable,” he commented.

To date, 151 RC holes had been completed at the project for 13 123 m, with the majority of the infill and extensional drilling angled at 60° towards the south-west.

High-grade intercepts were revealed in hole 14MRC112, which intersected 2 m at 24.6 g/t of gold from 36 m.

“The current drilling has confirmed a historical high-grade intersection and follow-up drilling has indicated low-grade mineralisation 20 m further along strike to the south-east, indicating a newly defined mineralised zone 30 m below the lowest zone,” Monument outlined.

The highest-grade intercept showed an interval of 11m at 14 g/t of gold, including 1m at 103 g/t in drill hole at the project’s Federal City North target, however, follow up drilling failed to confirm the high grade. 

Additional drilling on a north-south orientation was planned in this area to test for a narrow cross-cutting subvertical east-west structure that may host the mineralisation and which could have been missed using the current drilling orientation.

Monument exploration manager Lisa Wells said the drill results had shown “impressive” high-grade intersections in exploration and extensional drill holes at Federal City. 

“High-grade zones are outside of the current mineralisation and could be hosted in subvertical cross-cutting structures. The orientation and extent of the high-grade zones is unknown at this stage and requires further confirmation drilling.

“The company is now undertaking a diamond drilling programme to twin these high-grade holes to assist the interpretation. A further follow-up RC programme is also about to start at Federal City to assist the understanding of the orientation of the mineralisation to aid future targeting,” she outlined.

Various studies were currently under way, progressing towards a preliminary economic assessment for the Alliance, New Alliance and Federal City resources.

APPEAL DENIED
Monument revealed this week that its motion for leave to appeal to the Federal Court against the order of the Court of Appeal with regard to the Selinsing Mining (SMSB) case had been denied.

As a result, $9.4-million would be deposited by the company into a joint account maintained by legal counsel of the respective parties to the lawsuit until disposal of the full trial, which had been fixed for hearing on February 16 and 17.

Monument had earlier obtained a stay order from the Federal Court in October 2014, after its appeal was dismissed by the Court of Appeal against the decision of the Shah Alam High Court, which ordered Monument to deposit $9.4-million pending a full trial, relating to the dispute between it and SMSB.

In 2012, SMSB filed a Writ and Statement of Claim against Monument and its wholly-owned subsidiaries, claiming among other things, a 5% joint venture (JV) interest in the profit of the gold production from one of the tenements of Monument's Selinsing mine.

SMSB was the previous sublease holder and operator that sold the Selinsing mine to Monument and its subsidiaries.

Monument denied that SMSB had any JV interest in Selinsing and intended to continue to “vigorously” defend this claim.

Monument had opposed and appealed against the decision of the Shah Alam High Court and Court of Appeal on the ground, among others, for dismissing the requirement for an order for fortification by SMSB, a dormant company, for damages that could be incurred by the company for depositing the $9.4-million.