After a comprehensive review of the extensive exploration opportunities at the Yandal Gold Project, Echo has developed an exploration pipeline and strategy to drive increased shareholder value. The ongoing exploration strategy has two primary objectives:
- Define +100koz of oxide material to enhance the current mine plan for the Yandal Gold Project; and
- Find new, underground, high-grade resources typical of the region which have potential to transform the Company.
Aeromagnetic and gravity surveying work completed by Echo in 2017 identified a new, highly prospective 25km long corridor in the northern region of the Yandal Gold Project. The area, known as the Hadrian Trend, is located between Echo’s Julius Gold Deposit and the Ramone Deposit, owned by Northern Star Resources Ltd (ASX:NST). The Hadrian Trend is an exciting new area for the Company to explore for new gold deposits. Preliminary scout drilling and full-suite multi-element geochemistry has been conducted on bottom-of-hole samples to define the lithostratigraphy and highlight geochemical gradients to better understand the geology of an unexplored district. Interpretation of the results from the work and integration with geophysical datasets is being used for further exploration targeting along the Hadrian Trend and the broader Bronzewing District.
Mt Joel (70% Echo) has been identified as an area that could provide additional oxide ore to the mill. Mt Joel is located approximately 12km northeast of Bronzewing with discontinuous gold mineralisation extending over 8km with near surface mineralisation spread over numerous prospects. Gold occurs in quartz veins and vein selvedges associated with pyrite +/-chalcopyrite. Drilling to date has indicated that mineralisation occurs predominantly in the oxide-transition zone extending from the base of transported material to the base of weathering, a zone more than 100m deep in places.
Preliminary drilling was undertaken in the June quarter of 2018 to validate the historical database with results confirming the existence of significant mineralisation contained within the oxide zone and the potential to add significant ounces to Echo’s resource inventory. An extensive air-core and reverse circulation drilling program commenced in October 2018 which confirmed, extended and increased the confidence in the mineralisation observed in the historical drill-hole data. Results returned from the program included:
- 16m @ 5.5 g/t Au from 8 m, including 3m @ 13.8 g/t Au, and 11m @ 8.1 g/t Au from 58 m, including 1m @ 44.5 g/t Au (MJAC129)
- 17m @ 4.9 g/t Au from 24 m, including 2m @ 12.5 g/t Au (MJAC128)
- 20m @ 5.56 g/t Au from 33m, AND 4m @ 4.74 g/t Au from 10m (MJAC079)
- 10m @ 3.86 g/t Au from 20m, AND 11m @ 2.61 g/t Au from 34m (MJAC090)
A new, JORC-2012 compliant Mineral Resource Estimate for Mt Joel is expected to be completed in Q2 2019.