Alderan Resources : AL8 to focus Detroit drilling on Drum and Mizpah prospects
AL8.AX
ASX ANNOUNCEMENT
30 December 2021
Alderan to focus Detroit drilling on Drum and Mizpah prospects
HIGHLIGHTS
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• Future drilling at Alderan's Detroit Project in Utah, USA will focus on Drum Gold Mine and the
neighboring Mizpah distal disseminated gold prospect.
• Alderan's mapping, sampling and modelling indicate Drum and Mizpah have potential for
leachable oxide plus primary sulphide gold mineralisation - oxide remains open and the
primary sulphide potential is untested by past exploration.
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• Alderan's in-pit rock samples at Drum assay up to 10.7g/t gold with 36 of 76 samples assaying
+0.5g/t gold and 22 assaying +1.0g/t gold.
• Previous Alderan drilling at Mizpah includes gold mineralised intercepts up to 83m in length.
• Modelling of historical drill data highlights strong potential for remnant mineralisation, high-
grade gold in structural zones and mineralised extensions at Drum and Mizpah.
• Drum and Mizpah have not received modern exploration since mining ceased at Drum in 1989.
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Alderan will incorporate Drum and Mizpah drilling in its Detroit programme which
recommences in January 2022.
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Alderan Resources Limited (ASX: AL8) (Alderan or the Company) is pleased to announce it will focus future drilling on the Drum Gold Mine (Drum) and the Mizpah gold prospect within its Detroit Project, located in the Drum Mountains region of western Utah, USA.
Drum and Mizpah are distal disseminated gold deposits which lie only 2km apart to the southeast of the Basin p rphyry. The decision to focus on Drum and Mizpah follows receipt of assays for hole 3DD21-001 and expedited
ections of holes 6DD21-004 and 6DD21-005 which returned low gold grades.
Figure 1: Detroit project geology showing location of Mizpah prospect
and Drum Gold Mine.
ASX ANNOUNCEMENT
30 December 2021
Detroit Drilling Update1
onlyAlderan has received gold only assays for drillhole 3DD21-001 and results for the expedited sections in holes 6DD21-004 and 6DD21-005. These holes are part of Alderan's 10-hole programme to test seven separate geochemical, geological and geophysical targets at Detroit. Gold assays received to date are low order (<0.1g/t Au) for all of samples submitted; multi-element assays, including copper, are yet to be received.
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Figure 2: Basin Complex 3D inversion model chargeability anomaly (20-30 millisecond shell; yellow)
overlying the Basin Main magnetic anomaly (>0.03 SI units cutoff; red) showing the location of all Stage
1 planned and completed holes. Future drilling will be re-focused on Drum and Mizpah.
Hole 3DD21-001
Alderan designed this hole, drilled to a depth of 332.4m, to test the high amplitude 80 millisecond Southern chargeability geophysical anomaly located in close proximity to the historical Charmed gold mine. The anomaly occurs at a favourable stratigraphic contact between shales and limestone and across a west dipping fault.
1 Refer Alderan ASX announcements dated 15 October 2021, 12 November 2021, 8 December 2021.
ASX ANNOUNCEMENT
30 December 2021
The hole intersected a largely unaltered sequence of grey limestones and calcareous siltstones and shales. The source of the chargeability anomaly is interpreted to be carbonaceous shales and pyrite intersected in the top half of the hole.
onlyAlderan submitted 242 samples including standards for multi-element analysis and gold assay results received are all low grade with the highest assay being 0.08g/t over the interval from 279.5 - 280.8m (1.3m) downhole.
Hole 6DD21-004
Drill hole 6DD21-004 was drilled to a depth of 209.4m, testing the Northern Extension chargeability anomaly
f r a distal disseminated gold deposit in favourable host stratigraphy and in close proximity to the Copperhead Fault. The Northern Extension chargeability anomaly has a 3D inversion model strike length of 1.1km, width of 500m and depth extent of 500m at a >20 millisecond cutoff.
useThe east-southeast trending Copperhead Fault is interpreted to be one of the major mineralising structures at Detroit with Alderan rock samples collected at the historical Copperhead mine grading up to 3.1% copper and 9.1g/t gold.
The hole intersected a sequence of altered calcareous shales and siltstones interbedded with limestones and dolomites. The prospective Chisholm and Tatow units were both traversed with the Chisholm intersected over a downhole length of 61m having strongly developed iron oxide clays and local silicification. The Tatow
consists of a 33m length of brecciated, carbonaceous and calcareous siltstone and shale with dark fine-grainedpersonalsulphide flooded bands.
A 21m length (124.6 - 145.5m downhole) of sheared, carbonaceous and strongly altered Tatow containing >10% sulphides was sampled and submitted for expedited lab analysis2, however gold assays are low grade. The highest assay being 0.04g/t Au over the interval from 139.4 - 140.9m (1.5m) downhole.
Hole 6DD21-005
Drill hole 6DD21-005, testing the 3D inversion modelled 900m long dumbbell shaped Copperhead chargeability anomaly (>20 milliseconds cutoff) in targeted Tatow host stratigraphy near the Copperhead fault ended at a depth of 441.07m. It traversed a similar interbedded fine grained clastic sediment and carbonate sequence as hole 6DD21-004. The prospective Tatow Formation is intersected over approximately 20m from 389m and consists of silicified, fractured and oxidised, calcareous siltstone with approximately 10% fine grained magnetite and sulphides2. A total of 21 samples from a 31.8m interval (396.6 - 428.4m downhole) were submitted for
xpedited lab analysis with the highest gold assay being 0.07g/t over the interval from 404.5 - 406.1m (1.6m) downhole.
Assays for the remaining portions of the holes are yet to be received along with assays for holes 7DD21-002 & 003 and 6DD21-006.
ForDrum and Mizpah Background and Next Steps
Drum Gold Mine
Alderan secured an option over the Drum Gold Mine, one of the most productive and economically important sediment-hosted gold deposits in Utah, in late September 2021 as part of its strategy to consolidate the Detroit mining district3. Drum was discovered in 1982 with a drill intercept of 15m grading 8.5g/t gold and was mined from the adjacent East and West pits between 1984-894. Over its six-year mine life, it reportedly produced 125,000oz of gold from 3.17 million tonnes of oxide ore grading 1.22g/t gold. Towards the end of its life, a small underground operation was developed in the West Pit which produced mined grades of +4g/t gold.
ASX ANNOUNCEMENT
30 December 2021
Alderan's review of historical drill hole data at Drum suggests exploration potential for approximately 1.2 - 1.5 million tonnes of remnant mineralisation at an approximate grade of 1.1 - 1.4g/t gold (approximately 42,000 - 67,000 ounces)5. This estimate of exploration potential quantity and grade is conceptual in nature, there has onlybeen insufficient exploration to estimate Mineral Resources and it is uncertain if further exploration will result in
the estimation of a Mineral Resource.
The mineralisation remains open along strike to the south and down dip to the southwest where drill holes include YC-174 which intersected 15.2m grading 4.5g/t gold (including 6.1m at 10.3g/t Au) 150m from historical ore in
the West Pit. The ore horizon mined in the East Pit remains open down dip to the southwest and has not been drill tested below the West pit. Drum has both long and high-grade historical drill intercepts with hole DM-9 having a 70.1m intercept grading 1.0g/t gold and the highest grade individual assay over a 5ft (~1.5m) sample interval being 38.8g/t gold.
useAlderan composite grab rock chip sampling along the outcropping walls of the East and West pits has focussed on altered target host rocks of the Tatow and Chisholm formations which were the prime ore horizons during historical mining and in visible structural zones interpreted to be potential hosts of high-grade mineralisation. This sampling has verified the potential of Drum with the highest gold assay being 10.65g/t over a 2.8m sampling interval. Additional high-grade sample intervals include 1.7m grading 7.01g/t gold and 2.8m grading 5.86g/t gold. A total of 36 samples grade +0.5g/t gold with 22 of these grading +1.0g/t gold. An additional 17 samples grade +0.15g/t gold which is above the cutoff for oxide gold leach operations in neighbouring Nevada.
Alderan has already commenced drill site permitting so that drilling at Drum can commence in Q1, 2022 as part
of its current Detroit drilling programme. personalFor
Figure 3: Oblique view from south of Drum Gold Mine 3D block model on digital terrain model showing historical drill holes, section lines and highlighting the zone of historical drill hole YC-174 which intersected 15.2m @ 4.5g/t Au (including 6.1m @ 10.3g/t Au) from 73.2m downhole. Mineralisation extends subsurface below both pits and is open to the south- southwest. The block model has been estimated from the historical (1980s) drill hole data applying Multiple Indicator Kriging technique. The waste blocks which grade lower than 0.1g/t gold are not shown.
5 Refer Alderan ASX releases dated 18 and 19 November 2021.
ASX ANNOUNCEMENT
30 December 2021
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useFigure 4: Northeast-southwest long section (A-A') showing the Drum Gold Mine block model based on historical (1980s) drill holes and Alderan's interpreted geology. The modelled gold mineralisation extends below and to the southwest of the historical pit boundaries indicating potential for remnant mineralisation and hole YC-174 highlights the potential for high grade extensions down dip of the West Pit. Also, the mineralisation is modelled within two separate stratigraphic horizons, the Tatow Member and the Chisholm Formation which dip ~20-30 degrees southwest. The Tatow has not been adequately drilled down dip of the East Pit.
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Figure 5: Aerial view of Drum Gold Mine pits with Alderan rock sample locations and gold assay results.
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Alderan Resources Ltd. published this content on 29 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 December 2021 22:06:08 UTC.