Newmont gold drill results from west Waihi, more drilling ahead

Under the joint venture agreement, made in April 2006, Newmont agreed to undertake an initial NZ$400,000 exploration programme including drilling in the 280 hectare permit immediately west and south of the Martha mine. The permit contains potential strike extensions of all the major Martha veins and the Union Hill veins (Amaranth, Union and Trio).

Newmont’s initial work obligations for the joint venture were completed early and it has now elected to move to the next stage whereby, it may earn 60% equity in the permit by spending an additional NZ$1.1 million in further exploration within the next two years.

Newmont has drilled three holes, reporting the following intercepts:

• UW 254: 1m @ 0.69 ppm Au (180m), 1m @ 0.44 ppm Au (445m) and 6.4m @ 0.28 ppm Au (approx 565m).
• UW 272: 5m @ 0.13 ppm Au (347 -352m) and 1.6m @ 0.26 ppm Au (437 -438.6m).
• UW 278: 3m @ 0.11 ppm Au (253m) and 6m @ 0.18 ppm Au (286 -292m).

Newmont has advised that it intends to drill a further hole near the UW 272/278 location and follow-up on several anomalous geophysical features identified through on-ground surveying.

Newmont is also carrying out exploration as a joint venture partner in five other Glass Earth permits in the Hauraki area. Newmont can earn up to 75% interest in these permits.

Glass Earth says Newmont’s Hoist EM surveying has already highlighted interesting resistivity anomalies over the Wentworth/Glamorgan, Wharekiriponga, due north of Waihi, and Owharoa, south west of Waihi near Karangahake. These anomalies have provided an incentive to advance on-ground exploration of these areas as a priority.

Newmont’s 2007 exploration programme on these permits includes Hoist Electro-Magnetic surveying (Newmont's proprietary EM/magnetic system suspended under a helicopter), surface geochemistry, and resistivity surveys to define drill targets. First pass drilling is planned for mid 2007.

Source: Glass Earth