LONDON (Alliance News) - Orogen Gold PLC said Monday drilling at its Silverton project in Nevada, owned by Galileo Resources PLC, found no new lithology or conditions to identify high-grade feeder zones.
Orogen has the right to earn a majority interest in the Silverton project under its earn-in agreement with Galileo. However, Orogen said Monday its deeper drilling has only shown "low-grade" mineralisation, similar to that found at historic shallower depths.
Orogen said its drill programme showed mineralised intervals of up to 71.63 metres, grading at 0.20 grams of gold per ton, with smaller intervals with values of up to 1.33g/t.
"Results from the initial test drilling programme have shown that the gold mineralisation along the Silverton Fault continues at depth over a wide interval. The programme was designed to test for high grade feeder zones and as such we did not identify any new lithology or conditions to support this prognosis," said Colin Bird, chief executive officer of Galileo Resources and Orogen Gold.
"The new results will be assessed along with historic data in order to better understand mineralisation patterns and if appropriate generate further targets to be drill tested in 2017. In the meantime we will concentrate on the more advanced Mutsk gold project in Armenia, where the mineralisation footprint was extended significantly in the last few months and boundaries are yet to be defined," added Bird.
Shares in Orogen Gold were flat at 0.0135 pence Monday morning, while shares in Galileo Resources were down 7.5% at 1.55p.
By Adam Clark; adamclark@alliancenews.com
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