KEY POINTS:
Heritage Gold said today that the latest results from its drilling programme in the Coromandel are encouraging.
The company has been drilling in the Rahu Ridge area west of Waihi. The latest holes drilled, Hole Seven and Hole Eight, showed encouraging gold grades and suggested that gold mineralisation extended for 1300m.
"The results are encouraging and may indicate the existence of a new strongly gold mineralised structure at depth with economic potential. The results have certainly raised our expectations," managing director Peter Atkinson said.
He said Hole Eight revealed a 34m wide zone of strong gold and silver mineralisation between 59m and 93m down the hole.
The mineralisation was shallower than anticipated.
Hole Seven tested geophysical anomalies to the east and found no strong surface indications of gold but intersected two zones of strong gold mineralisation in hydrothermal breccias.
Mr Atkinson said the results confirm the company's model of the area.
"The gold grades in Holes Seven and Eight indicate that gold is dispersed in the upper parts of an extensive epithermal system," he said.
The next step is to look for feeder vein zones that may contain higher gold grades.
Heritage is continuing to drill below the previous holes.
The company, which listed on the NZX in 1986, is also listed on the ASX.
- NZPA
