Penny West returns high grades at depth

Goldcrest Resources (GCL-V) has hit high-grade gold on its Youanmi project, 480 km north northeast of Perth in Western Australia.

In April, 13 reverse-circulation holes totalling 1,407 metres were drilled on the Commonwealth-Connemarra prospect. Among the highlights were 7 metres grading 4.39 grams gold per tonne from 90 metres and, in a separate hole, 2 metres grading 9.98 grams gold. One hole failed to intersect significant gold. The remaining holes intersected 0.56-2.99 grams over widths ranging from 1 to 7 metres.

In December 2003, eight holes totalling 481 metres were drilled on the prospect, and a 2-metre intercept grading 97.6 grams gold was intersected, including 1 metre of 193.19 grams gold. Another hole cut 15 grams gold over 6 metres, including 1 metre of 56.83 grams gold and another metre grading 24.81 grams gold. The remaining holes intersected 0.55-3.66 grams gold over widths ranging from 1 to 16 metres.

The gold is associated with silica-carbonate-pyrite alteration in sheared mafic and felsic rocks containing local banded iron formation. The shear zone extends for more than 1 km, and mineralization has been locally concentrated along its length as it pinches and swells. The prospect is 2-3 km north of the past-producing Youanmi mine.

In April, 11 holes totalling 1,289 metres tested the Penny West prospect, and extension of the former mine of the same name, which is part of the Youanmi project. One hole, drilled to 188 metres, intersected 4 metres grading 11.9 grams gold at a depth of 173 metres. This intersection is about 80 metres below the open-pit floor. High-grade gold mineralization may be present at depth in a south-plunging central zone — an interpretation which will be tested by diamond drilling.

Two holes were drilled in a fence position 200 metres north of the pit. Both intersected 1-2 metres grading 1.09-5.94 grams gold. Seven of 11 holes contained no significant gold.

The Penny West deposit is about 30 km south of the Youanmi mine and just a few kilometres south of the Youngarra mine, another former producer. During its life span, Penny West was mined to a vertical depth of about 80 metres; the orebody corresponded to a sulphidic quartz vein 0.5-6 metres wide (commonly less than 3 metres) intersecting metabasalt in the Youanmi greenstone belt. The vein is near the contact of a porphyry with sheared gabbro.

Two other zones, Airstrip and United North, were tested using drills. One hole on the United North intersected 4 metres grading 4.06 grams gold per tonne. More work will follow.

At mid-April, Goldcrest Resources had 30.9 million shares outstanding, or 41.6 million on a fully diluted basis.