Paterson Resources has reported high-grade, shallow gold mineralisation from the second batch of assays at its Grace Gold-Copper Project, confirming promising results that exceed initial expectations and pave the way for an expanded drilling program.
- Second batch assays confirm wide, high-grade shallow gold zones
- Notable intercepts include 19m @ 3.53g/t Au from 40m depth
- All holes to date show mineralisation open at depth along 1.3km strike
- Phase II drilling planned with at least 32 holes targeting resource growth
- Current Inferred Resource stands at 1.59mt @ 1.35g/t Au for 69,000oz
Strong Early Results at Grace Gold-Copper Project
Paterson Resources Limited (ASX: PSL) has released the second tranche of assay results from Phase I of its extensive 8,500-metre reverse circulation drilling campaign at the Grace Gold-Copper Project in Western Australia's Paterson Province. The results reinforce the presence of high-grade, shallow gold mineralisation over a 1.3-kilometre strike length, with significant intercepts such as 19 metres at 3.53 grams per tonne gold from just 40 metres downhole.
These findings build on earlier positive results and confirm that the mineralised system remains open at depth, suggesting further potential for resource expansion. The drilling campaign has so far delivered consistent zones of wide gold mineralisation, which are particularly encouraging given their shallow depth, a factor that could simplify future mining and processing operations.
Implications for Resource Growth and Development
The current Inferred Mineral Resource Estimate (MRE) for the Grace Project stands at 1.59 million tonnes grading 1.35 grams per tonne gold, equating to approximately 69,000 ounces. Paterson’s board is now preparing to commence Phase II of drilling, which will involve a minimum of 32 drill holes totalling around 6,000 metres. This next phase aims to test extensions of known mineralisation and potentially upgrade the resource classification.
Executive Director Matt Bull expressed optimism about the results, noting they have exceeded initial expectations and provide strong confirmation of a high-grade, shallow gold system that remains open at depth. The company anticipates that once the full drilling campaign is complete and results analysed, it will recalibrate the resource model to better reflect the project's potential.
Strategic Location in a Mineral-Rich Province
The Grace Gold-Copper Project is situated in the heart of the Paterson Province, a region renowned for its mineral wealth and home to major discoveries such as Greatland Gold’s Havieron deposit and the Telfer gold-copper mine. This proximity to world-class deposits underscores the strategic importance of Paterson’s exploration efforts.
Paterson’s approach includes targeting stacked reefs and shear zone-hosted mineralisation, with geological models suggesting ore shoots associated with secondary structures that have yet to be fully tested. The shallow nature of the mineralisation also opens the possibility for a simple oxide processing circuit, which could enhance project economics.
Next Steps and Market Outlook
With the remaining seven assay results from Phase I pending, the market awaits further clarity on the full extent of mineralisation. Following the completion of drilling, Paterson plans to commission a scoping study to assess the project’s development potential and explore strategic partnerships. This study will be a critical milestone in defining the path to production and unlocking value for shareholders.
Overall, Paterson Resources’ latest announcement signals a promising advancement in the Grace Gold-Copper Project’s exploration journey, positioning the company well within a highly prospective region and setting the stage for potential resource growth and development.
Bottom Line?
Paterson’s Grace Project is shaping up as a compelling shallow gold target, with Phase II drilling and a scoping study poised to define its future trajectory.
Questions in the middle?
- How will the final Phase I assay results influence the updated resource estimate?
- What are the key targets and timelines for Phase II drilling and resource upgrade?
- How might the upcoming scoping study shape Paterson’s development strategy and partnerships?