NewPeak Metals Ltd (ASX:NPM, OTC:NPMFF, FRA:NPM) will begin Phase 2 diamond drilling at its 100%-owned Las Opeñas Gold Project in Argentina in mid-October, targeting a potential higher-grade gold core west of its recent large-scale discovery holes.
The minimum 1,000-metre program is fully funded from NewPeak’s recently completed placement, with a drill rig secured and preparations underway.
Phase 2 will initially focus on the western extension of the mineralised system, where gold grades increased across the company’s first-phase drilling and geological interpretation points toward the Belleza Breccia volcanic centre as a potential source of mineralising fluids.
The program could be expanded depending on observations from drill core, rig availability and funding.
Following up large-scale discovery
Phase 1 drilling demonstrated the scale of the Las Opeñas mineralised system, which remains open and largely untested to the west-southwest.
Among the key results was discovery hole LODH-023, which returned 663 metres at 0.42 g/t gold equivalent from surface, including 283 metres at 0.67 g/t gold equivalent from 7 metres and 84 metres at 0.72 g/t gold equivalent from 20 metres.
LODH-027 returned 657 metres at 0.30 g/t gold equivalent from surface, including 117 metres at 0.60 g/t from 77 metres.
NewPeak believes the consistent increase in gold grades toward the west, combined with its geological model, supports the possibility that higher-grade gold mineralisation may occur closer to Belleza Breccia.
The target map on page 2 of the announcement shows the proposed western target extending roughly 500 metres from the recent drilling toward the Belleza Breccia area, while the three-dimensional view on page 3 indicates the interpreted gold-rich core remains open toward the southwest.
Managing director Mark Purcell described Phase 1 as having provided a clear vector for follow-up drilling, with Phase 2 designed to directly test the interpretation of a higher-gold-grade core west of the latest holes.
Drilling set for October
NewPeak is continuing detailed relogging and geochemical analysis of Phase 1 data as it refines the final positions of the Phase 2 drill holes.
The rig has already been secured and drilling remains scheduled to begin in mid-October.
Las Opeñas is in San Juan Province, around 70 kilometres southeast of Barrick and Shandong Gold’s Veladero mine and about 110 kilometres north-northwest of Challenger Gold’s Hualilan project.
