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Apr 2018 - Draig Resources Ltd

Draig Resources Limited (DRG) – Heading for Its Maiden Bellevue Resource Announcement in SQ 2018

  • Draig Resources (DRG)’s main asset is 100% of the Bellevue Gold Mine and Project that is located ~40km north of Leinster in WA. Only a few months after getting its exploration boots on the ground in August 2017, Draig announced that it had discovered a parallel lode, namely the high grade Tribune lode In November 2017. The Tribune lode appears to be similar to the Bellevue Lode except that it lies in the Western Corridor, ie west of the “truncating Highway Fault” that supposedly closed the mine ~20 years’ ago in 1997.
  • The maiden resource to be reported in SQ2018 is currently expected to include the progress to-date (probably [ERA view] as at 30 June) of the evolving Tribune Lode that is open north and south on strike and at depth (after all the underground workings on the Bellevue Lode were ~1.8km long). The rest of the maiden resource includes: under the Henderson Pit and its link south to Bellevue; Hamilton Lode (parallel to and west of Bellevue); and Southern Belle (south on strike of Tribune and probably inferred).
  • The Bellevue lode was regarded by geophysicists as a textbook example of the correlation between downhole EM and intersected higher grades, due to its conductive pyrrhotite content. It is this correlation that has enabled Draig to drill the Tribune lode for geology, downhole EM and then follow-up drill for higher grade, and identify high grade ore shoots similar to Bellevue. Despite the correlation, ~ 5 deeper EM plates were not drilled by Plutonic (partly as they were west/south of the Highway fault), before they closed the mine
  • At this stage it has yet to be determined whether Tribune is a faulted upthrown offset of Bellevue – it appears to be theoretically possible depending on whether the Highway and West faults are strike-slip and/or reverse/normal, but has yet to be stratigraphically proven. The theory may be resolved by the co-funded EIS drillhole in the “gap” under Tribune. (NB: this is different to the “gap” further north, between Tribune & Hamilton Sth).
  • Draig also has acquired additional tenements at Kathleen Valley, adjacent and further north of its Bellevue tenements that contain reasonably extensive old workings such as those at “Big Mill Well” which do not appear to have been examined for some time.
  • Additional tenements have also been acquired ~40km east in Yandal South which lies between Bronzewing and Darlot. Draig’s Yandal South area has already become “hot property” with Northern Star delineating a “deep-seated gold-plumbing conduit” adjacent to Bronzewing from the North; and Red 5’s recent acquisition from Anglogold of the targets along the Ockerburry fault entering from the South. Plus the unexplained ~4km to 5km diameter ring complex anomaly of Popes Patch, and its old workings on the western side of the complex (almost on-strike [~N/S] of Red 5’s additional new exploration targets).

Other Key Points: :

  • Infrastructure appears to be very good for Draig's Bellevue Project, with established dirt haul & main roads, onsite mains power, and water. There are a number of operating plants with spare capacity within a radius of ~100km from the mine, although Draig could even go it alone depending on its available resources.

  • Draig is initially focusing on the lodes contained in its NNW/SSE striking Bellevue and Western Corridors. This “Dacian-like” approach means that peripherals such as Westralia, Vanguard and Canberra have been classified as “distractions” and hence left for exploration at a future date.

  • Written by: Keith Goode
  • Friday, 27 April 2018

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