Boutique gold explorer Ophir Gold has announced "encouraging results'' from assays of its first round of test drilling samples in Central Otago and another test drilling programme is pencilled in after winter.
Consultant geologist Dr John Youngson said Ophir Gold Ltd had recently carried out a follow-up drilling programme on its Wai-iti gold prospect, near Ophir in Central Otago, where it is targeting a Macraes-style hard-rock gold deposit, discovered in the late 19th century.
"Results from the first batch of samples submitted to SGS Laboratory for assay returned many intercepts with grades between 1g and 5.25g of gold per tonne, and are encouraging,'' Dr Youngson said.
Results due in about a month, from the second batch of samples, are expected to return further gold-bearing intercepts and confirm the presence of a minable resource, Dr Youngson said.
In the latest round of drilling, 11 holes were drilled, amounting to 500 lineal metres, and at depths of between 24m to 51m.
Dr Youngson said there was alluvial (loose) gold within Ophir's permitted area, albeit "trivial'' in quantity, and it was gold trapped in hard rock which was being targeted; similar to Oceana Gold's operation at Macraes in East Otago.
He said the Wai-iti deposit was much smaller than the Macraes deposit, but could be projected along a strike line for more than 1km, and offered "significant potential'' to increase the gold resource in the future.
When asked about how ore production could be undertaken, Dr Youngson said it could be an independently operated boutique mine, or a joint venture with an existing miner, and both scenarios were being considered.
He said preliminary investigations elsewhere within Ophir Gold's permit had confirmed that several nearby structures were also gold-bearing and could further add to the resource.
● Ophir Gold, previously known as Ophir Mines Ltd until early 2006, has its registered office in Christchurch.
Its two directors are Raymond Polson, of Christchurch, and Alistair Ward, of Auckland.
The company has 35 shareholder allocations.
Almost half the allocations are from the South Island, one each from Australia and Hong Kong, and the rest from the North Island, according to Companies Office records.
