Yesterday Newmarket Gold announced drill results from 17 drill holes at Harrier South gold system at its flagship property, Fosterville. This announcement was supplemental to another announcement published in July 2016. Generally, the company is trying to convert resources attributable to the Harrier zone into reserves.
Let me show a map presenting where the main Fosterville gold systems are:
source: Newmarket Gold
To date, the company was mining at three zones: Central, Phoenix and Harrier.
Now, as it is common practise, when a miner wants to find new gold it starts from the current operations (brownfield exploration). Newmarket is no exception and the company drills at Phoenix and Harrier zones at the moment.
Drilling results I am talking about were delivered at the Harrier zone. According to the last mineral base estimates (as of December 2015) the Harrier Zone was holding:
- measured and indicated resources: 497 thousand ounces of gold
- inferred resources: 230 thousand ounces of gold
And that is the point. Newmarket wants to convert resources into reserves. Hence, drilling campaign at Harrier (look at the map, a rectangle on the left).
So, what about these drilling results. Well, it looks like the deeper the drill goes the higher grade of the ore.
Let me cite the company CEO:
Up to date Newmarket has drilled 74 holes totalling 20,793 metres. And that is not the end of this campaign. However, the market reaction on these results was quite enthusiastic but, to be honest, it is too early to celebrate. Let the company to go on drilling and...celebrate a little bit later.