Wia Gold Limited reports 15.5m at 6.53 g/t in Kokoseb underground drilling
The strongest interval sits within the existing resource envelope, while separate drilling supports a 170-metre extension of the Central exploration target.
Mara Quinlan
Wia Gold Limited ASXWIA reported on Tuesday that hole KDD191 returned 6.53 grams per tonne gold over 15.5 metres within the Central Zone underground resource envelope at Kokoseb in Namibia. Separate drilling supported a 170-metre extension of the Central Underground exploration target to the northeast, expanding the area being tested beyond the existing resource.
Shares in ASXWIA fell 2.2 per cent to A$0.45 on the ASX at 10:43 a.m. AEDT on Tuesday, according to Google Finance.
Wia reported assays from 33 diamond drill holes covering 18,476 metres, with six diamond rigs continuing to drill. The company said the results supported underground growth potential beneath the planned open pit, but the announcement does not establish a larger mineral resource.
The underground resource announced on Aug. 10 contains 560,000 ounces, all inferred, at a gold cut-off of 0.85 grams per tonne. It comprises 7.9 million tonnes grading 2.2 grams per tonne, providing an existing estimate to test for grade continuity and expansion.
The KDD191 intersection began at a depth of 499.5 metres and included 3 metres grading 27.93 grams per tonne gold. The reported lengths are drill intervals.
At the Central Underground exploration target, KDD163 intersected 20.7 metres grading 1.75 grams per tonne gold from 779 metres. Three holes confirmed 300 metres of continuity to the southwest, while the northeastern extension followed a reassessment after completion of KDD175.
Southern Underground drilling confirmed mineralisation continuing down-plunge, with the target still open at depth. Hole KDD185 returned 18 metres grading 2.78 grams per tonne gold from 606 metres.
The Intermediate and Deep High-Grade target also returned positive results. KDD183 intersected 6 metres grading 6.06 grams per tonne gold from a depth of 623 metres.
Wia plans to drill the Central target at 50-metre spacing in both directions to confirm grade continuity. Further step-out holes to the southwest will test the extent of the mineralised horizon.
"Infill drilling has further strengthened confidence in the continuity of mineralisation within the Central Underground Resource Envelope," managing director and chief executive Henk Diederichs said in the release.
Wia owns 80 per cent of Kokoseb, whose Aug. 10 feasibility study assessed open-pit mining with a 14-year mine life. The study projected average output of 150,000 ounces annually over the first 10 years, so underground development remains an opportunity beyond that mine plan.
Wia's Sept. 24 annual report said full funding to first gold remained conditional on completing a proposed US$360 million debt facility. The company is progressing mining licence and environmental approvals while preparing for project execution.
Wia will hold its annual general meeting on Nov. 19.
