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Wednesday, Jun 12, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Gold

Orla Mining drills 3.53 g/t gold over 36.6 metres at South Railroad property in Nevada

Test results indicate that geological continuity extends beyond projected open pit

Orla Mining drills 3.53 g/t gold over 36.6 metres at South Railroad property in Nevada
A tour of the South Railroad project. Image via Orla Mining.

Orla Mining Ltd. (TSX: OLA) (NYSE: ORLA) has pulled high gold grades from the ground at its South Railroad property in Nevada.

The company announced results from the 2023 infill and extension drilling, which totals seven drillholes and over 2,508 metres. Overall, drilling at South Railroad in 2023 was over 14,695 meters and the company intends on sharing additional results from other exploration targets in the near future.

In 2023, Orla extended oxide-hosted gold mineralization at the Pinion and Dark Star deposits, with highly positive drill intersections discovered outside of the projected open pits.

Meanwhile, infill drill results met expectations by confirming oxide mineralization inside the projected pits, while providing material for new metallurgical column test work.

A review of available geological data at the Pinion deposit suggested that gold mineralization might continue in the southeastern part of the deposit over the Pinion SE target area, where previous interpretations had indicated faulting might limit or displace the extension of mineralization.

The company completed three drill holes totalling 822 meters to test this thesis.

All three drill holes found oxide-hosted gold mineralization, including 0.72 g/t Au over 112.7 meters (oxide). This confirms the uninterrupted continuity of gold mineralization to the southeast without interference from fault displacement.

These results, along with historical drill intersections, indicate geological continuity and suggest that gold mineralization extends to at least 350 meters outside of the projected open pit.

Exploration drilling at the Dark Star deposit involved drilling 1,112 meters in two drill holes. Results from these two exploration holes identified the potential to extend oxide mineralization beyond the currently defined mineral resources.

Read more: Calibre Mining intercepts rich gold mineralization at Nicaragua’s Limon complex

Read more: Calibre Mining reports 96% net income rise for 2023, exceeds production guidance

Orla drilling planned in 2024 will follow encouraging results

The 2024 exploration program at South Railroad is scheduled to commence in the spring and continue through October.

The South Railroad Project covers a strike length of over 25 kilometers along the southern part of the prolific Carlin Gold Trend, Nevada. Gold mineralization at South Railroad occurs mainly as disseminated Carlin-type ore-stage pyrite in stratiform breccia and stratigraphic horizons within a complex fault network.

The property hosts multiple zones of oxide, transition, and sulfide mineralization throughout the entire land package, with current oxide measured and indicated mineral resources of 1.8 Moz (75.3 Mt at 0.74 g/t Au) inclusive of proven & probable mineral reserves of 1.6Moz (65.2 Mt at 0.77 g/t Au) at the Pinion and Dark Star deposits.

Drillhole DR23-01 targeted the potential extension of high-grade mineralization east of the currently designed open pit limit.  It returned wider and higher-grade oxide-hosted gold mineralization than nearby drill holes and the average resource grade.

It included results such as 3.53 g/t Au over 36.6 meters (oxide) and 5.23 g/t Au over 19.8 meters.  These are located approximately 50 meters beyond the projected open pit limit. These results suggest the potential to define additional oxide mineralization, possibly associated with a previously unknown feeder structure for the Dark Star deposit.

Additional drilling planned for 2024 will follow up on these results, testing the feeder structure model and define the potential to expand resources and enlarge the projected open pit.

Read more: Calibre Mining reports bonanza grade drill results at Nicaragua’s Limon mine

Read more: Calibre Mining closes top tier gold merger with Marathon Gold

Nevada offers many different types of gold options

Nevada’s diverse geology has led to the formation of various types of gold deposits, making it one of the most prolific gold-producing regions in the world. The state’s gold deposits have attracted significant exploration and mining activity, contributing significantly to its economy and mining industry.

The state boasts a rich diversity of gold deposits with two primary types prevalent across the state’s expansive mineral-rich terrain. These are epithermal and Carlin-type gold deposits.

Epithermal gold deposits also contribute significantly to Nevada’s gold wealth, typically found in volcanic terrains associated with past volcanic activity. Forming near the surface, epithermal deposits are often linked to geothermal activity.  These are present as veins or stockworks containing gold in association with minerals like quartz and sulfides.

This is the type of gold that Calibre Mining (TSX: CXB) (OTCQX: CXBMF) and Kinross Gold Corporation (TSX: K) (NYSE: KGC) pull from properties at Pan Mine and Bald Mountain respectively.

Carlin-type gold deposits stand out as the cornerstone of Nevada’s gold production.  These are characterized by microscopic gold particles dispersed within sedimentary rock formations. These are clustered along major fault zones within the Roberts Mountains Formation.  More specifically, these are along the Carlin Trend in north-central Nevada.

In addition to Orla, other companies looking for Carlin results include Barrick Gold (NYSE: GOLD) (TSX: ABX) and Newmont Corporation (NYSE: NEM) (TSX: NGT), both of which work on the Nevada Gold Mines joint venture.

 Calibre Mining is a sponsor of Mugglehead news coverage

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