Resources & Energy Group (ASX:REZ) has delivered promising drill results from its Gigante Grande prospect, revealing significant gold mineralisation beyond the existing resource boundary and highlighting potential for a new resource at the Southern Extension.
- Six reverse circulation drill holes returned multiple gold intercepts over 2 g/t Au
- Southern Extension located 1 km south shows potential new resource
- Best intercepts include 2 m at 4.20 g/t Au in fresh granodiorite
- Plans underway for orientated diamond core drilling to refine geological understanding
- Historical Kota Paxi drilling results from 2023 also reported
Drilling Confirms Gold Beyond Existing Resource
Resources & Energy Group Limited (ASX:REZ) has confirmed significant gold mineralisation approximately one kilometre south of its established Gigante Grande Mineral Resource within the East Menzies Gold Project, Western Australia. The latest reverse circulation (RC) drilling campaign, comprising six holes totaling 726 metres, returned multiple gold intercepts exceeding 2 grams per tonne (g/t) Au, including standout results such as 2 metres at 4.20 g/t Au in fresh granodiorite rock.
This new data bolsters the case for expanding the current resource, which was previously estimated at 1.39 million tonnes at 0.91 g/t Au for 40,700 ounces. The Southern Extension drilling campaign has revealed mineralisation in both the weathered saprolite and fresh rock zones, with some intercepts located less than 40 metres from surface, indicating near-surface potential.
Southern Extension Emerges as Next Resource Target
Four drill holes tested the Southern Extension of the Gigante Grande Central Domain, with three returning significant gold intercepts. Drill hole 26GGRC046 was particularly notable, intersecting four mineralised zones over a 180-metre length, highlighted by 2 metres at 4.20 g/t Au including a 1-metre interval grading 5.86 g/t Au. This mineralisation is associated with potassic alteration, a hallmark of gold systems, and occurs in fresh granodiorite.
Conversely, one hole (26GGRC047) showed only low-grade mineralisation, suggesting variability in continuity that warrants further drilling to delineate the extent of the system. The company’s Managing Director, J. Daniel Moore, emphasised the excitement around the Southern Extension, describing it as having “every indication of being the next Mineral Resource” pending future drilling alignment.
Central Domain Drilling Supports Resource Growth
In addition to the Southern Extension, two holes drilled at the northern edge of the existing Gigante Grande resource confirmed multiple mineralised zones. Noteworthy intercepts included 9 metres at 1.10 g/t Au from 36 metres downhole in 26GGRC049, featuring higher-grade intervals such as 1 metre at 3.12 g/t Au. These results affirm the continuity of gold mineralisation in saprolite and fresh rock zones near surface, supporting potential resource expansion.
Historical Drilling at Kota Paxi Adds Context
The announcement also disclosed previously unreported assay results from August 2023 drilling at the Kota Paxi prospect, situated at the southern end of the 7-kilometre Gigante Grande mineralised trend. Drill hole GGRC45 intersected gold mineralisation at multiple depths, including 1 metre at 2.07 g/t Au at 87 metres. This data provides additional context for the continuity of gold mineralisation along the trend and complements REZ’s ongoing exploration efforts.
Next Steps Focus on Structural Understanding and Resource Definition
REZ plans to advance its understanding of the Gigante Grande system through a targeted orientated diamond core drilling program. This approach aims to clarify the host rock lithologies and structural controls on mineralisation, which are critical for refining resource models and guiding further exploration. Additionally, the company intends to integrate surface sampling, geophysical data, and recently acquired LIDAR surveys to better assess lithological contacts and mineralisation controls along the extensive strike length.
The East Menzies Gold Project remains REZ’s flagship asset, underpinning both near-term production ambitions via the Maranoa joint venture and longer-term exploration upside at prospects including Gigante Grande and Goodenough.
Bottom Line?
REZ’s latest drilling underlines the Gigante Grande prospect’s potential to grow its gold resource, but further drilling and structural studies are essential to confirm continuity and economic viability.
Questions in the middle?
- Will the planned diamond core drilling clarify the structural controls sufficiently to accelerate resource definition?
- How continuous and economically viable is the gold mineralisation in the Southern Extension given the variable intercepts?
- What impact will these results have on REZ’s broader East Menzies exploration strategy and valuation?