Major Drilling Campaign Commences at 154,000oz Laverton Gold Project
Verity Resources Limited (ASX: VRL) has launched a significant resource upgrade and expansion drilling program at its 100%-owned Monument Gold Project in Western Australia's prolific Laverton Goldfields region. The company is targeting an upgrade of its existing 154,000oz JORC-compliant gold resource with a strategic multi-phase drilling initiative.
The first phase of the program consists of 3,600 meters of RC drilling across 54 drill holes at the Korong deposit, which currently hosts 139,000 ounces of the project's total resource. This initial campaign aims to elevate the resource classification from Inferred to Indicated, providing the foundation for future economic studies and a mining license application.
"The initiation of this first resource-focused drilling campaign is an exciting milestone for Verity and its Monument Gold Project," said Patrick Volpe, Director of Verity Resources. "Our systematic approach aims to rapidly upgrade the Korong and Waihi resources, potentially add ounces along the way, and move towards economic evaluation through scoping studies whilst a mining licence application progresses in the background."
High-Grade Historical Results Point to Significant Potential
The Korong deposit has already demonstrated impressive high-grade intercepts from historical drilling, including:
| Drill Hole | Intercept | Depth |
|---|---|---|
| MRC036 | 7m @ 13.15g/t Au | from 7m |
| MRC003 | 6m @ 7.24g/t Au | from 79m |
| KORC001 | 6m @ 3.15g/t Au | from 95m |
| KORC002 | 5m @ 3.22g/t Au | from 130m |
These historical results highlight the potential for high-grade mineralisation within the broader resource envelope, which the company aims to better define and potentially expand through the current program.
Understanding Banded Iron Formation (BIF) Hosted Gold Deposits
A key geological feature of the Verity Resources Monument Gold Project is the presence of gold mineralisation hosted within Banded Iron Formation (BIF). This type of deposit is significant in the Laverton region and plays an important role in the project's overall potential. Similarly, Alarum Resources targets strong gold mineralisation in BIF formations across their own projects, highlighting the importance of these geological structures.
What are Banded Iron Formations?
Banded Iron Formations are distinctive sedimentary rock units characterised by alternating layers of iron-rich minerals and silica-rich bands. These formations typically formed between 3.8 billion and 1.8 billion years ago during a time when Earth's atmosphere was transitioning from oxygen-poor to oxygen-rich conditions.
Why are BIFs important for gold exploration?
BIF units often serve as excellent host rocks for gold mineralisation due to several key characteristics:
- Chemical reactivity: The iron-rich layers can react with gold-bearing fluids, helping to precipitate gold.
- Structural competence: BIFs tend to fracture in predictable ways during deformation, creating pathways and traps for gold-bearing fluids.
- Continuity: These formations typically extend for considerable distances, providing extensive potential host zones.
Regional context
The BIF unit at the Monument Gold Project is interpreted to be the same geological formation that hosts the 1.4Moz Westralia gold deposit, located directly southeast of the project. This geological connection significantly enhances the prospectivity of Verity's tenements. In fact, Vital Metals drills high-grade gold intercepts within BIF-hosted zones in the same region, confirming the potential of these formations.
The current drilling program will not only upgrade resource confidence but also provide critical samples for initial metallurgical test work to assess the processing characteristics of the BIF-hosted gold mineralisation at Korong.
Strategic Location in World-Class Gold District
The Monument Gold Project occupies a premier position in one of Australia's most productive gold regions. The project:
- Comprises 195 square kilometers of tenure in the Laverton Gold District
- Is directly adjacent to Genesis Minerals' (ASX: GMD) 3.3 million ounce Laverton Gold Project with a 3.1Mtpa operating mill
- Contains approximately 20km of relatively untested banded iron formation
- Has over 60 additional gold targets across BIF, basalt and intrusion-hosted settings
The proximity to Genesis Minerals' substantial resource and operating infrastructure represents a significant strategic advantage for future development scenarios. Furthermore, Lewis Gold Resources commences drilling multiple gold targets in the Laverton region, demonstrating the continued interest in this prolific goldfield.
Multi-Phase Growth Strategy Underway
The current drilling program represents just the first phase of Verity's broader resource expansion strategy at the Monument Gold Project. Following the completion of this initial RC campaign, the company plans to undertake:
- Diamond drilling for detailed structural analysis and further metallurgical testing
- Step-out RC drilling to extend the resource footprint along strike and at depth
- Exploration of the Waihi deposit (currently 15,000oz)
- Testing of high-priority targets along the 20km BIF horizon
To date, only approximately 10% of the potential 20km strike length has been drilled with detailed air core and reverse circulation methods, highlighting the substantial exploration upside remaining across the project. This approach is similar to how Austin Metals accelerates drilling programs in prolific gold districts to maximize discovery potential.
Resource Growth Potential
The existing resource at the Verity Resources Monument Gold Project currently stands at 3.257 million tonnes grading 1.4 g/t gold for 154,000 ounces, split between:
- Korong deposit: 3.034 million tonnes at 1.4 g/t gold for 139,000 ounces
- Waihi deposit: 223,000 tonnes at 2.1 g/t gold for 15,000 ounces
Both deposits remain open in all directions, presenting multiple opportunities for resource expansion. The current drilling campaign is designed to both upgrade the confidence level of the existing resource and potentially add new ounces through strategic step-out holes.
"The Board and exploration team have been looking forward to the commencement of drilling as part of the resource upgrade and expansion strategy at Monument. We are confident in the potential the project presents with additional highly prospective BIF and intrusive targets that we plan to uncover alongside our resource development plans," added Patrick Volpe.
Investment Opportunity
Verity Resources presents a compelling investment proposition based on several key factors:
- Resource Growth Potential: The existing 154,000oz resource remains open in all directions with multiple avenues for expansion.
- Strategic Location: Positioned in a Tier-1 mining jurisdiction adjacent to a major gold project with established infrastructure.
- Technical Approach: Systematic drilling program focused on both resource confidence and expansion.
- Multiple Catalysts: Near-term news flow expected from drilling results, resource updates, and metallurgical testing.
- Exploration Upside: Over 60 additional targets identified across the property with less than 10% of the prospective strike length adequately tested.
The current drilling campaign at the Monument Gold Project represents a significant step in Verity's growth strategy, with results expected to provide valuable insight into the resource potential and economic parameters of the project. With drilling now underway, investors should monitor developments closely as the company works to unlock the full potential of its Monument Gold Project, where significant historical high-grade results and extensive untested strike length suggest substantial upside potential. The approach mirrors successful strategies seen elsewhere in the region, where Vital Metals expands gold footprint at Laverton with new discoveries through systematic exploration.
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