NewPeak Metals Ltd (ASX:NPM, OTC:NPMFF) has started a minimum 1,000-metre Phase 2 diamond drilling program at its Las Opeñas Gold Project in Argentina, targeting a potentially higher-grade gold zone west of its recent discovery holes at the project.
A drill rig has been secured and mobilisation preparations are underway, with the program fully funded from NewPeak’s recently completed $3.5 million capital raise.
The initial campaign will be tightly focused, although the company has the option to extend drilling based on core observations, rig availability and funding.
Drilling targets gold-rich western extension
Phase 2 is testing the west-southwest extension of the mineralised system identified during NewPeak’s first drilling campaign.
The gold grades strengthened towards the two westernmost Phase 1 holes, supporting an interpretation that a more gold-dominant part of the system may occur closer to the Belleza Breccia volcanic centre.
Managing director Mark Purcell said Phase 1 had provided a clearer vector for follow-up drilling.
“Gold grades are increasing westerly in the two western-most holes and geological work supports the interpretation that a higher-gold-grade core of the system may sit west of recent holes, closer to the Belleza Breccia volcanic centre,” he said.
“Phase 2 is designed to test that thesis directly.”
The mineralised system remains open in multiple directions, particularly towards the west-southwest.
Phase 1 established scale
The new program follows broad mineralised intersections from Phase 1 drilling, which established the scale of the emerging gold-polymetallic system.
Discovery hole LODH-023 returned mineralisation throughout its 663-metre length at 0.42 g/t gold equivalent from surface, including 84 metres at 0.72 g/t gold equivalent from 20 metres and 283 metres at 0.67 g/t from 7 metres.
LODH-027 also returned mineralisation throughout its 657-metre length at 0.30 g/t gold equivalent from surface, including 117 metres at 0.60 g/t from 77 metres.
Las Opeñas is in San Juan Province, around 70 kilometres southeast of the Veladero gold mine.
Next steps
Detailed relogging and geochemical analysis of Phase 1 drilling continues, as NewPeak finalises Phase 2 hole locations.
The initial 1,000-metre program will focus on testing the untested western extension towards Belleza Breccia, with additional drilling possible if geological observations support further work.
