Resources & Energy Group has reported strong gold intercepts from grade control drilling at its Maranoa project in Western Australia, including 2 metres at 15.84g/t and 4 metres at 10.38g/t. The results support further mine-planning work, but do not yet change the deposit’s existing inferred resource.
- 2m at 15.84g/t gold from 57m
- 4m at 10.38g/t gold from 81m
- Nine RC holes completed for 614m
- 1,200-1,500m follow-up drilling now planned
- Existing resource remains 8,000 ounces
Maranoa drilling delivers narrow high-grade hits
Resources & Energy Group Limited (ASX:REZ) has produced some striking grades beneath the historic Maranoa workings, with the best result returning 2 metres at 15.84g/t gold from 57 metres in hole 26MRC042. Hole 26MRC051 also produced 4 metres at 10.38g/t from 81 metres, alongside a separate 4-metre interval grading 2.76g/t.
The July program comprised nine slimline reverse circulation holes for 614 metres. Other reported results included 1 metre at 2.34g/t in 26MRC046 and 2 metres at 3.25g/t in 26MRC050. The company says the intersections indicate mineralisation continues beneath and along strike from the old workings, although the reported widths need to be read carefully: angled-hole intervals approximate true width, while the vertical-hole results are apparent widths of roughly twice the true width.
Results support mine planning, not a resource upgrade
REZ is using the drilling to define ore and inform mine planning under its tribute mining and production joint venture with Rembrandt Mining. The company retains 100% ownership of the mining lease, while the announcement states that Rembrandt funds the mining campaign under a sliding-scale profit share.
That distinction matters. Maranoa still carries a JORC 2012 Inferred Mineral Resource of 46,000 tonnes at 5.7g/t gold for 8,000 ounces, reported at a 1.0g/t cut-off in 2020. REZ expressly says the new grade control results are not a Mineral Resource update. Nor does a handful of high-grade intervals establish the scale, continuity or economic viability of a larger deposit.
Southward drilling puts continuity to test
The next test is already being prepared. An RC rig has been remobilised for approximately 1,200-1,500 metres of additional drilling south along the line of historic workings, with angled holes planned beneath the workings. Geological mapping is also under way across the Maranoa belt, where the company says several historic high-grade lines remain sparsely tested.
The immediate data set is incomplete. Assays remain outstanding for holes 26MRC041 and 26MRC043, while three holes intersected historic stopes. Those voids may reflect past mining rather than a failure of the mineralised system, but they also complicate the task of converting attractive drill results into a reliable mine plan. The follow-up program, pending assays and any subsequent resource work will show whether Maranoa has more than isolated high-grade shoots beneath its old workings.
Bottom Line?
The grades are encouraging, but the investment case now turns on continuity, missing assays and how historic stopes affect mineable inventory.
Questions in the middle?
- Will the two pending holes extend the high-grade trend or leave the current results as isolated intersections?
- How much of the reported mineralisation remains available after historic workings and stopes are accounted for?
- When will REZ translate the drilling into updated mine planning or a revised Mineral Resource estimate?