Riversgold Ltd.'s two discoveries at its Farr-Jones project in Western Australia's Eastern Goldfields have given managing director Allan Kelly confidence that more such finds are there, in a region broker Argonaut says could well be a "dark horse."
The junior announced Jan. 16 that the first aircore holes drilled at the new Eales and Little targets had returned discoveries with results including 4 meters at 1.03 g/t gold and 12 meters at 1.9 g/t gold, respectively, and will now conduct a more patterned aircore program down that same geological corridor.
Kelly, who founded Doray Minerals Ltd. in 2009 and took Andy Well from discovery to production in 3.5 years then funded, permitted, constructed and commissioned Deflector after completing the takeover of Mutiny Gold Ltd. in 2015, told S&P Global Market Intelligence that the discoveries were "pretty exciting."
He said the discoveries have "definitely changed the complexion of what we were looking for at Farr-Jones from a little high-grade thing by itself, [to now believing] there's the potential for multiples of these things along this 2.5-kilometer corridor which is still open to the north and south."
"Plus we have potential for parallel zones at places like Horan and a historical soil anomaly on the other side of Farr-Jones to the west which also had not been followed up," he added.
Farr-Jones was part of a bigger project area that Mt. Martin Gold Mines explored in the early 1990s with lots of soil sampling, followed up with three rotary air blast holes on one line then a couple of reverse circulation holes, with the bottom RC hole ending in 2 meters at 4.7 g/t.
Yet it remained untested and was one of Riversgold's top priorities when it listed on the ASX in October 2017, but the tenement was not yet granted and the company had to negotiate an access agreement with Silver Lake Resources Ltd..
Kelly said that when Riversgold first followed up under the aforementioned RC hole, its first drill hole returned 3 meters at 17 g/t gold including 1 meter at 48 g/t, and follow-up RC drilling north and south of it got hits from 2 g/t up to 17 g/t, but the junior had trouble working out the strike and dip orientation.
With a 50% hit rate using RC drilling, Riversgold did its own soil sampling and found a nice soil anomaly at North Farr-Jones, drilled it and got 1 meter at 4 g/t, 1 meter at 2.5 g/t and 1 meter at 3 g/t.
The reason why that potential remained dormant for so long, Kelly said, was that magnetics do not reveal anything as the geological corridor hosts black shale, so Kelly believes a combination of soil sampling and AC drilling is the best way forward.
"In the soil sampling, Mt. Martin tended to get higher numbers on the western mafic side of the Randall fault so the soil anomalies over the black shales on the eastern side got downgraded, but if you look at the statistics for the soils just on the eastern side you start to pick up subtle little soil anomalies that could represent more mineralization like what we've just announced," Kelly said.
Argonaut Metals & Mining Research Analyst James Wilson covered Integra Mining — which had tenements south of Riversgold — before Silver Lake took over it in 2012, and believes that the geological area has "always been a bit of a sleeper" until Silver Lake recently started "going hard" at regional exploration around Randalls and Maxwells to discover new resources.
He said that around Integra's old ground "you have all the structurally deformed zones there which is why Silver Lake is starting to get onto these things now," but as Kelly suggested, "it's discrete stuff, generally not well represented on surface, so is just a function of drilling."
Silver Lake's increased exploration and Riversgold's latest discoveries next door suggest Farr-Jones "might be a bit of a dark horse" for Kelly, Wilson told S&P Global Market Intelligence.