TNM Drill Down: Cerrado in Argentina leads gold assays for week of Sept. 11-15

Our TNM Drill Down features highlights of the top gold assays of the past week. Drill holes are ranked by gold grade x width as identified by our sister company Mining Intelligence.

Assays in Argentina, the United States and Australia led the best results for the week of Sept. 11-15. Cerrado Gold (TSXV: CERT) recorded its highest grades yet at the Don Nicolas mine in Santa Cruz province, Argentina. OceanaGold (TSX: OGC; US-OTC: OCANF) reported a high-grade intercept in a resource conversion program at its Haile project in South Carolina, while Bellevue Gold’s (ASX: BGL) result is part of a project slated to start up this year beside the former Bellevue mine in Western Australia.

Cerrado reported on Sept. 11 that reverse-circulation drill hole PA_RC23-123 cut 12 metres grading 122.2 grams per tonne from 109 metres depth for a grade x width of 1,466.4 at Don Nicolas.

The Toronto-based company collared the hole about 150 metres west of the site’s operating Chulengo pit to target its extension. This west-to-southwest trend can be traced on surface following hydrothermal alteration along a strike length of more than 650 metres, the company said in a release.

The Chulengo pit is on the eastern edge of the trend while the Baritina pit sits 200 metres north of the western edge of the trend. Cerrado is drilling additional holes in the area, it said.

“We see substantial potential to grow resources at depth and unlock additional high-grade ounces as exploration continues,” CEO and chairman Mark Brennan said in the release. “We are also pleased with the ongoing development of the various projects.”

Studies and engineering designs are underway for the site’s Calandrias Norte open pit and the Calandrias Norte underground project, while Cerrado awaits final approval for the underground zone of the Paloma open-pit deposit, the company said.

In Argentina, Cerrado expects to produce 50,000-70,000 oz. gold this year from Don Nicolas and the heap leach operation at Las Calandrias that poured first gold in June. That operation is expected to add annual output of 25,000 ounces.

OceanaGold said on Sept. 14 that diamond drill hole UGD00002 cut 73.9 metres grading 13.03 grams from 306.8 metres down hole for a grade x width 962.92 at Haile. Gold was discovered at Haile in 1827. In 2015, OceanaGold acquired the property, which is the largest gold producer on the east coast of the U.S.

The drill hole, part of a resource conversion program at the Horseshoe underground mine at Haile, comes after disappointing grades and production at the site’s Mill zone deposit. Haile’s output this year will likely be about 25,000 oz. below the guidance of 170,000 oz. to 185,000 ounces, OceanaGold said.

Company-wide gold production for 2023 should meet the lower end of the estimated 460,000 oz. to 510,000 oz. because of strong performance at Didipio in the Philippines and Macraes in New Zealand, it said.

About 800 metres southwest of Horseshoe, resource conversion at Palomino has been completed and a model update is scheduled for early next year, OceanaGold said.

Bellevue Gold reported on Sept. 12 that diamond drill hole DDUG1121 cut 14 metres grading 14.9 grams from 63 metres depth or a grade x width of 691.6 at the Deacon Main area beside the past-producing Bellevue mine. It operated on and off from 1896 to 1997 under various owners, giving up some 800,000 ounces. Bellevue plans to start its operation this year. See Vrify 3-D images of the site below:

Bellevue interprets the Deacon main shear to be a structural repeat of the Bellevue Shear zone, host to the historical Bellevue mine 400 metres west. Infill drilling results from Deacon Main show similar geology to the current high-grade mining area of Bellevue South, the company said.

“Deacon is one of four early-stage mining areas within the project, giving us maximum flexibility and diversification,” Bellevue managing director and CEO Darren Stralow said in a release. “The high grades and strong continuity add to the de-risking process as we prepare for first production in the coming quarter.”