AuTECO kicks off 2023 with exceptional drill results in the March quarter
Press Release
- Further high-grade intercepts demonstrate Pickle Crow Project’s 2.2 Moz at 7.8 g/t gold Inferred Resource remains open in all directions
- Step-out drilling at Tyson discovery extends mineralisation with intersections including: o 7m @ 16.1g/t gold from 309.6m downhole
- 2.3m @ 16.4g/t gold from 320.2m downhole
- Assays confirm new zone of banded iron hosted mineralisation from near-mine drilling
- Further assay results from the winter exploration campaign are pending with detailed analysis and interpretations to follow, along with an update to the Mineral Resource
- An extensive regional exploration program programme will commence in the June quarter to target key gold structures outside of the main mine trend, which has had little to no previous historic testing
- Placement successfully raised approximately $9 million (before costs) to fast-track regional exploration
- $10.4M in cash and cash equivalents at 31 March 2023
AuTECO Minerals Ltd (AUT:ASX) (AuTECO or the Company) is pleased to provide a summary of activities for the March quarter of 2023. Field activities continued to focus on the Pickle Crow Gold Project in Ontario, Canada.
AuTECO Chief Executive Officer Darren Cooke said:
“We achieved more success in the March quarter with the drill bit, with further high-grade intercepts demonstrating the Pickle Crow project’s 2.2 Moz at 7.8 g/t Inferred Gold Resource remains open in all directions.
“Firmer ground over the Canadian winter has enabled us to continue our aggressive exploration drilling campaign in areas not normally accessible in warmer months. More assay results are anticipated and I look forward to sharing them as they become available.
“The quarter also saw the Company successfully raise approximately $9 million, which has helped fast-track our regional exploration plans as we look to grow the potential resource away from the historical mine site.
“As the weather warms up, we are in the advanced planning stages of our summer exploration campaign, which will look to conduct the first modern belt-scale exploration campaign in the northern Pickle Lake greenstone belt.
“We look forward to providing further updates as we continue working towards delivering an upgrade to the existing inferred high-grade gold resource at Pickle Crow.”
EXPLORATION PROGRAM
The 50,000-metre drill campaign concluded during the March quarter at the Pickle Crow project in Ontario, Canada.
The key strategic objectives of the drill program demonstrate AuTECO’s continued commitment to the dual pathways of driving near-mine resource growth combined with early-stage exploration and discovery drilling on the 500km2 of regional tenure.
Firming of the ground during the winter period provided the Company with access to areas across its tenements that are harder to reach in warmer months, such as parts of Tyson. This window of improved access allowed the Company to deploy two diamond drill rigs on site.
The initial focus of the winter exploration program was to follow up significant drill intersections from last year’s seasonal campaign at the Talia discovery (5.5m @ 18.0g/t gold) and Cohen-MacArthur, where assays of up to 92g/t gold were returned (refer to the ASX release dated 3 May 2022 and the ASX release dated 23 June 2022).
The Company completed a total of 10,786 metres of diamond drilling during the quarter.
SUMMARY OF MARCH QUARTER EXPLORATION RESULTS
Tyson Vein System
During the quarter, AuTECO’s exploration program uncovered further near-mine high-grade gold intercepts at the Pickle Crow Project (see Figure 1).
Step-out drilling at the Tyson discovery continued to extend mineralisation with two separate high-grade intersections – 2.7m @ 16.1g/t and 2.3m @ 16.4g/t gold (AUDD0347), as announced in the ASX release on 24 January 2023.
These intersections were just slightly apart from each other and ~70 metres along strike of the previously reported zone of 7.8m @ 16.7g/t gold in hole AUDD0266 (see ASX release dated 3 May 2022).
The Tyson vein system is a series of mineralised quartz lodes first discovered by AuTECO in 2021 (see ASX release dated 5 October 2021).
In October 2022, a step-out hole was drilled to test for continuity and depth extensions of the Tyson veins encountered in previous drilling.
Hole AUDD0333 was completed at a depth of 1,263 metres and intersected six zones of veining. Assay results received from AUDD0333 include the highest-grade intersection achieved by AuTECO to date – 0.4m @ 1,020g/t gold from 809.9m (see ASX release dated 22 November 2022).
Figure 1: Summary map showing AuTECO near mine drilling intersections, as announced on 24 January 2023
Shaft 1 Drilling (Vein 5 plus a new mineralised BIF Zone)
AuTECO received further assay results during the quarter from recent drilling in the Shaft 1 Area, which was aimed at testing potential extensions of the Vein 5 structure (see ASX release dated 24 January 2023).
These results confirmed a new zone of banded iron hosted mineralisation returning an intersection of 11.9m @ 3.5g/t gold from 432.4m downhole (AUDD0340), which remained open both along strike and at depth.
AuTECO also received another high-grade assay result from hole AUDD0339, intersecting 0.4m @ 19.6g/t gold from 390.8m downhole.
This demonstrates continuity of the high-grade vein structure when taken into consideration with results announced in the prior quarter (refer ASX release dated 11 October 2022 and ASX release dated 22 November 2022) including:
- 4m @ 71.9g/t gold from 126.1m AUDD0315
- 4m @ 29.8g/t gold from 62.9m AUDD0331
- 4m @ 9.4g/t gold from 152.1m AUDD0338
- 0m @ 7.2g/t gold from 433.7m AUDD0335
- 8m @ 5.5g/t gold from 346.0m AUDD0334
- 2m @ 5.1g/t gold from 65.8m AUDD0334
Historically, more than 200,000 ounces of gold was extracted from the high-grade vein, with the continuous structure averaging approximately 0.5 metres in width. Recent drilling by AuTECO has successfully demonstrated the vein continues along strike beyond the extents of historical mining.
Vein 19 Footwall Structure
A previously unidentified quartz vein was encountered in the footwall of Vein 19 during the quarter, with an intersection of 5.7m @ 5.4g/t gold from 415.1m downhole in hole AUDD0344 (see ASX release dated 24 January 2023).
FORWARD WORK PLAN
Work is in progress on a revised Mineral Resource Estimate (MRE) which will be released when completed. Following the updated MRE, the Company intends to assess underground access options and progress associated permitting activities. The purpose of the underground access is primarily to convert the Inferred Resource to a higher confidence category, in addition to continuing year-round exploration from more favourable subsurface drill positions.
Whilst the underground access review and permitting is undertaken, AuTECO will focus on unlocking the regional potential of the 500sqkm land holding in the Pickle Lake greenstone belt.
This will mark the first modern camp-scale exploration campaign in the district, with an extensive lease-wide mapping and sampling campaign planned for the summer field season between June and October 2023.
Regional exploration drilling is scheduled to recommence in late 2023.
CORPORATE
PLACEMENT RAISES $9 MILLION
During the quarter, the Company successfully raised approximately $9 million (before costs), with the funds to be used to fast-track seasonal exploration at Pickle Crow, as announced in the ASX release dated 2 February 2023.
AuTECO received firm commitments from institutional, sophisticated and professional investors to raise the funds through a placement (Placement) of 180 million fully paid ordinary shares at an issue price of 5c each.
The funds will help further unlock the upside potential in the Company’s regional acreage surrounding the Pickle Crow mine site as AuTECO continues to work towards increasing the size of the existing 2.2Moz at 7.8g/t gold Inferred Resource at the project.
FINANCIAL INFORMATION
AuTECO’s cash position at 31 March 2023 was $10.4M. Refer to Appendix 5B report provided separately for principal movements in consolidated cash for the quarter.
Information as disclosed in the Cash Flow Report:
- Net cash used in exploration activities (expensed and capitalised) totalled ~$3.2M;
- There were no mining production and development activities during the quarter; and
- Payments to related parties of the Company and their associates for Executive and Non-Executive Directors fees, including (where applicable) superannuation, totalled $141K.
HEALTH AND SAFETY
COVID-19 prevention practices remained in place at Pickle Crow, with no impact on day-to-day operations.
The Pickle Crow gold project 12-month rolling average Lost Time Injury Frequency Rate (LTIFR) as of 31 March 2023 remains at zero (0.0). There were no reportable incidents recorded during the quarter.
For and on behalf of the Board.
Mr Ray Shorrocks
Executive Chairman
AuTECO Minerals Ltd
Phone: +61 8 9220 9030
Media:
Josh Lewis
SPOKE Corporate
+61 412 477 266
ABOUT AUTECO MINERALS
AuTECO Minerals Ltd (ASX:AUT) is an emerging mineral exploration company focused on advancing high-grade gold resources at the Pickle Crow Gold Project in the world-class Uchi sub-province of Ontario, Canada.
The Pickle Crow Gold Project currently hosts a JORC 2012 Mineral Resource of 2.23 Moz at 7.8g/t gold, with a 50,000m drilling program recently completed to expedite Resource growth. Pickle Crow is one of Canada’s highest-grade gold mines – historically producing 1.5 Moz at 16g/t gold.
The Company also holds a 90% interest in the Limestone Well Vanadium-Titanium Project in Western Australia.
For further information regarding AuTECO Minerals Ltd please visit the ASX platform (ASX:AUT) or the Company’s website https://www.autecominerals.com
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