Golden Dragon hits broad high-grade gold zones in WA
Brought to you by Bulls and Bears
Michael Busbridge
Initial drilling at Golden Dragon Mining has intersected several large, high-grade gold zones near surface at the Coodardy mine, one of the key targets of the company’s wider Cue project in the Murchison region of Western Australia.
A standout hit returned an impressive 8m run at 7.3 grams per tonne (g/t) gold from 20m within a wider 24m area grading 2.7g/t gold.
Other high-grade catches included a 16 meter tranche grading 1.7 g/t gold from 16 metres, a 4 meter tranche from 16 meters progressing to 4.6 g/t gold, while a third hole had a 4 meter drill bit testing 9.7 g/t gold from 24 meters within a wider 8m intercept grading 5.1 g/t gold.
For a company that listed only months ago, Golden Dragon says these strong results align neatly with initial drilling targets and confirm a sustained high-grade trend spanning at least 700 meters within the wider near-surface system.
‘The main focus of the next phase of exploration will be to test this high-grade region to the north and south.’
Golden Dragon Mining managing director Simon Buswell-Smith.
Shallow oxide mineralization consists of stacked, flat-lying quartz veins, a geometry well-suited to free-dug open-pit mining techniques. The oxidized character of the ore zone suggests that the metallurgy may also be amenable to standard leaching techniques.
What makes these results shine even brighter is that the entire mineralizing offensive is now under one company, transforming what was once a series of leases under different ownership into a unified exploration story along a corridor filled with gold pedigrees.
Just down the road is Westgold Resources’ massive Big Bell gold mine, home to a massive resource base of 2.3 million ounces; The nearby Cuddingwarra mining centre, also owned by Westgold, produced around 780,000 ounces at a tidy 2.1 g/t in its heyday.
Golden Dragon’s new approach to consolidating otherwise fragmented land ownership appears to be paying early dividends elsewhere, with legacy prospects involving key historic crossroads suddenly attracting attention.
Golden Dragon Mining managing director Simon Buswell-Smith said: “The main focus of the next phase of exploration will be on testing this high-grade zone in poorly tested areas to the north and south to expand mineralization. The team interpreted the high-grade zone as dipping northward into fresh rock; “If this is approved as we expect, it will be a very exciting development.”
The company has a pipeline of drill-ready targets across Coolardy. These include the Curtis Find, where past drilling yielded 3m of 11.2g/t gold, and the Piston, which achieved 0.9g/t gold on a larger 24m intersection. Most leads only saw occasional follow-ups and remained open in many directions and depths.
The Cue project is located just sixty kilometers northwest of the town of Cue and is surrounded by operating processing facilities, including Westgold’s Tuckabianna Mill and Ramelius’ Mount Magnet operations. The potential for a lucrative remuneration deal with nearby operators if Golden Dragon runs into a salary crunch underscores a dedicated milling path for the company.
As conditions were already turning, Golden Dragon quickly transitioned from terrain combiner to active explorer to potential explorer.
Backed by consolidated territory-wide ground that appears to have multiple advancement goals, the company now has all the ingredients and logistical advantages to pursue a meaningful discovery and fast-track any success in an infrastructure-rich region built on gold.
The company appears to be letting go of the reins just in time, with gold prices soaring almost 50 percent in just over six months to US$4996 (AU$7114) per ounce.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
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