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Alice River discovery shows her golden years are not over yet

Business

Shares in Queensland gold explorer Pacgold have jumped 77 per cent in two days Wednesday after the company announced it had hit a significant discovery at its Alice River project in north Queensland.

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The company said it had confirmed the central and southern targets of the resource were linked “as part of an extensive gold system now defined over a greater than 3.5km of strike”.

It said there were strong indications it had intersected the upper levels of a large-scale, high grade gold system with gold grades and widths continuing to increase with further drilling.

Alice River has been mined before. Pacgold said in the 1900s, there were several underground mines up to 40m deep for over 3km, which produced 3000 ounces of gold at 30 grams per tonne. In the late 1990s, colluvial and alluvial ore was mined producing another 3000 ounces at 2.5g/t.

Pacgold managing director Tony Schrek said the drilling results provided compelling indications of a high-grade gold system 100 metres below the surface.

Some of the latest drilling results were 17 metres at 9.3 g/t and 6 metres at 6.5 g/t.

Schrek said there were strong similarities between Alice River and the Donlin gold deposit in Alaska.

Shallow gold mineralisation has been discovered and defined over 3.5km of strike and that lies within a 30km-long structural corridor that was “highly prospective”.

 

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