ATW Gold Targets Gold-Copper At Gullewa

VANCOUVER — As part of a confirmation and stepout drill program at its Gullewa project in Australia, ATW Gold (ATW-V, ATWGF-O) has hit a 28-metre intercept grading 1.54 grams gold per tonne, 1.5 grams silver and 0.86% copper starting at 66 metres depth in hole 13.

The intercept, thought to be either a new mineralized zone or a fault offset of Gullewa’s Deflector zone, is good enough that ATW Gold president and CEO states ATW will mobilize drill rigs to the area around the hole so as to delineate any potential mineralization.

ATW reports that the mineralization in hole 13 is similar to the Deflector zone about 600 metres north and 300 metres east where ATW has outlined a gold-silver-copper resource. Both areas of mineralization are steeply dipping and have northeast- trending quartz veins with pyrite, chalcopyrite and pyrrhotite.

The hit comes at an opportune time as ATW is currently conducting a scoping study of the Gullewa project, where at the Deflector zone the company has calculated resources of 535,000 measured tonnes grading 3.87 grams gold, 8.03 grams silver and 1.18% copper, plus 1.2 million indicated tonnes grading 4.32 grams gold, 6.34 grams silver and 0.96% copper.

Gullewa is 300 km southwest of ATW’s operating Burnakura gold mine, which recently achieved commercial production, and 450 km north of Perth. It consists of 756 sq. km of mineral tenements covering central and southern portions of the Gullewa Greenstone Belt.

ATW bought a 100% stake in Gullewa last year from Batavia Mining (BTVMF-O, BTV-A) for 2 million shares and A$13 million worth of instalments payable over a three-year period.

The purchase included licensed tailings disposal facilities, a 50-person camp and processing infrastructure that included a 300,000- tonne-per-year carbon-in-leach plant. All facilities are currently on care and maintenance.

On news of the drill intercepts, ATW’s share price gained 3¢ to close at 65¢. ATW has about 61 million shares outstanding.

In other ATW news, the company has dropped its bid for Kinbauri Gold (KNB-V, KINBF-O). ATW and Kinbauri had struck a friendly merger deal in July, after Kinbauri rejected an earlier bid by Orvana Minerals (ORV-T, ORVMF-O).

But after Orvana sweetened its offer to 75¢ a share from 55¢ a share, and Kinbauri’s board of directors chose neither to accept nor reject Orvana’s offer, ATW decided to walk.

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