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Vital Metals Ltd to drill known gold-bearing vein systems in Queensland

Published: 22:00 04 Sep 2016 EDT

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Vital Metals Ltd (ASX:VML) is about to commence a 2,000 metre drilling program at the 100% owned Elephant Creek gold prospect located in far north Queensland.

The program will target a number of the 11 known gold-bearing vein systems that have produced historical assays of up to 40 g/t gold.

Initial gold assay results could be available in late October and will follow assays expected this month from the Kollo Gold Project in Burkina Faso.

Mark Strizek, managing director, commented: “With the first phase of diamond drilling completed and reverse circulation drilling continuing at Kollo in Burkina Faso – and the first assay results expected soon – and drilling planned to begin in Queensland later in the month, investors can look forward to strong upcoming news-flow on multiple fronts.”


Background

Vital Metals owns a gold project in Burkina Faso, the Elephant Creek gold prospect in Queensland and two tungsten projects; one in North Queensland and the other in Germany.

The Kollo gold project is located on the Dolunia tenement which is part of three 100% owned tenements in Burkina Faso that together cover over 400 square kilometres.

Vital Metals has also completed a definitive feasibility study on the fully permitted, 100% owned Watershed Tungsten Project in North Queensland.

The recently identified Elephant Creek gold prospect is located to the south of Watershed.


Historical assays

Previous historical exploration drilling at the Elephant Creek Gold prospect includes intercepts such as:
 
- 4 metres at 14.5 g/t gold from 12 meters;
- 10 metres at 1.95 g/t gold from 14 metres;
- 4 metres at 2.21 g/t gold from 35 metres; and
- 19 metres at 2.14 g/t gold from 27 metres.

The gold is coarse-grained and reportedly has a high silver content, but contains little associated sulphides. 
 
Drill testing of veins hosting gold mineralisation at Elephant Creek will begin once site preparation activities are completed.


Analysis


The commencement of this drilling program at Elephant Creek will give Vital leverage to gold exploration upside from both West Africa and Australian projects.

Vital is moving quickly to unlock the value of its gold assets at a time of strong investor interest in the gold sector with the AUD gold price trading at A$1,745 per ounce gold.

A drill program recently completed at the Kollo Gold Project and a new program is just beginning, creating a pipeline of upcoming news flow for the company.

Furthermore, Kollo contains known high grade, shallow mineralisation and is located in a premier gold mining region.

Results to date suggest Kollo has early-stage development potential and has significant exploration potential.

A good opportunity exists to increase the extents of known mineralisation through further drilling, which is now in progress.

The company is up 60% year to date, currently trading at $0.021.

 

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