Paterson Resources has reported impressive shallow gold intercepts at its Grace Gold-Copper Project, setting the stage for a significant resource upgrade and the next phase of drilling.
- Phase I drilling yields high-grade shallow gold intercepts
- Notable results include 8m @ 5.62g/t Au and 23m @ 2.3g/t Au
- Current inferred resource stands at 1.59Mt @ 1.35g/t Au for 69,000oz
- Phase II drilling planned with 32 holes targeting resource upgrade
- Grace Project located in prolific Paterson Province near major deposits
Strong Early Results Highlight Grace Project Potential
Paterson Resources Limited (ASX:PSL) has released encouraging assay results from the first phase of its 8,500-metre reverse circulation drilling campaign at the Grace Gold-Copper Project in Western Australia's Paterson Province. The standout intercepts include 8 metres grading 5.62 grams per tonne gold from 97 metres depth, and a broader 23 metres at 2.3 grams per tonne gold from 72 metres, both indicating a robust and shallow gold system.
These results continue a pattern of consistent shallow mineralisation along a 1.3-kilometre strike length, reinforcing the project's upside potential. The Phase I campaign has delivered 17 out of 18 assay results, with several previously unreported high-grade intervals further confirming the presence of significant gold mineralisation.
Resource Recalibration and Project Advancement
Building on these promising results, Paterson's geology team is set to recalibrate the current inferred Mineral Resource Estimate (MRE), which stands at 1.59 million tonnes at 1.35 grams per tonne gold, equating to approximately 69,000 ounces. This recalibration will focus on the 1.3-kilometre strike extent down to 200 metres depth, refining the understanding of the deposit's scale and grade distribution.
With site access conditions improving, the company is preparing to launch Phase II of its drilling program, targeting 32 reverse circulation holes totalling around 6,000 metres. This next phase aims to further upgrade the resource classification, potentially converting portions to an Indicated status, which is a critical step towards defining a viable mining operation.
Strategic Location in a Prolific Mining Province
The Grace Gold-Copper Project is strategically situated in the heart of the Paterson Province, a region renowned for hosting world-class deposits such as Greatland Gold's Havieron and Telfer mines, as well as Cyprium Metals' Maroochydore copper prospect. This proximity to major discoveries underscores the geological potential of Paterson's tenure.
Paterson's Executive Director, Matt Bull, emphasised the significance of the Phase I results, noting the consistent shallow, high-grade gold intersections as compelling evidence of a substantial underlying system. He highlighted the company's commitment to advancing the project through resource upgrades and establishing a clear path to market, which could unlock considerable shareholder value.
Looking Ahead
While the Phase I results are promising, the true test will come with the completion of Phase II drilling and subsequent resource model updates. The company’s methodical approach, including rigorous sampling and quality control protocols, aims to ensure reliable data to support future development decisions.
Investors and industry watchers will be keenly observing how Paterson leverages these results to progress the Grace Project towards production, especially given the competitive landscape of the Paterson Province.
Bottom Line?
Paterson’s strong early drilling results at Grace set the stage for a pivotal resource upgrade and project advancement in a highly prospective region.
Questions in the middle?
- Will Phase II drilling confirm and extend the high-grade zones to support an Indicated resource upgrade?
- How will Paterson strategise funding and development to capitalise on the Grace Project’s potential?
- What impact will ongoing exploration success have on Paterson’s positioning within the competitive Paterson Province?