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Highlights
Fifth diamond drillhole at Sunnyside Prospect returned 150m @ 0.71g/t Au, including higher-grade sections.
Hole extended mineralisation by ~60 metres, supporting bulk tonnage potential and confirming continuity.
Despite the results, shares dropped 25.8% to 4.6 cents on Friday morning.
Shares of Koonenberry Gold Limited (ASX:KNB) fell sharply on Friday, dropping 25.8% to 4.6 cents per share, after the company released assay results from its fifth diamond drillhole at the Sunnyside Prospect, part of the Enmore Gold Project in northeast New South Wales.
The update revealed a broad mineralised intercept from drillhole 25ENDD005, which returned 150 metres at 0.71 grams per tonne (g/t) of gold from 230 metres. Notably, the hole included higher-grade sections, such as 21m @ 1.65g/t Au from 356m, and 10.4m @ 2.36g/t Au from 360m, indicating the presence of more concentrated gold zones at depth.
Importantly, the latest hole has extended the mineralised envelope by approximately 60 metres from the previous hole (004) on the same section, confirming both the continuity and scale of mineralisation in the area. The company estimates that the mineralised zone now has a true width of around 75 metres across the strike of the primary Sunnyside shear zone.
The gold mineralisation remains open in several directions — up-dip, at depth, and along strike, particularly within the preferred granite host rock, which is considered prospective for further extensions of mineralised zones. These geological characteristics enhance the potential for defining a large, bulk-tonnage gold deposit.
Koonenberry also confirmed that assay results from hole 6, which reportedly contains visible gold, are expected in mid to late June, while results from holes 007 to 010 are anticipated in early Q3.
The company stated that it is well-funded with $10.35 million in cash, enabling it to proceed with its planned 10,000+ metre drilling campaign at Enmore and advance exploration across other projects in its portfolio.
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