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Deeper drilling could be game changer for Avalon

Published 22-SEP-2016 16:29 P.M.


2 minute read

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On Thursday morning, Avalon Minerals (ASX: AVI) released assay results from the first drillhole at its Satulinmaki gold project located in southern Finland.

This is one of two prospects in southern Finland being investigated by the company with follow-up drilling being undertaken following the delineation of high-grade near surface intersections, particularly at Satulinmaki.

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Results from recent assays indicated shallow gold from the first diamond drill hole at Satulinmaki with individual assays up to 15 grams per tonne over a 1 metre sampling interval.

While broader sampling intervals demonstrated lower grades it is management’s expectation that the deposit will yield robust grades at depth. On this note, a total of six holes have now been completed at the prospect and encouragingly, all have intersected altered and structurally complex zones coincident with the interpreted positions of gold lodes from historical drilling results.

A total of six drill holes have been completed, testing several interpreted north-east trending sub-parallel gold bearing vein systems along a strike length of 250 metres and a vertical extent of 150 metres. Importantly, the vein systems are open at depth and along strike.

In highlighting the prospect of potential success from deeper drilling, AVI’s Managing Director, Malcolm Norris said, “Based on other gold deposits within the regional schist belt such as Jokisivu (62 kilometres north-west) and Orivesi (107 kilometres north-east), these have sub-vertical geometries and extend to depths of between 300 metres and 1200 metres below surface respectively, suggesting significant upside potential at Satulinmaki.

The two mines referred to by Norris are operated by Dragon Mining (ASX: DRA), a group with multiple Scandinavian projects that has experienced significant share price accretion over the last 12 months, partly due to exploration success.

The following demonstrates the characteristics of Dragon’s Jokisivu mine referred to by Norris.

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