Nelson Resources (ASX:NES) reports high grade gold and silver results from Orleans Mine

Nelson Resources has reported results from a systematic underground channel sampling program at the Orleans Mine within its Gold Point Project in Nevada, USA.

Thirty continuous channel samples were collected along the exposed hematite quartz breccia vein on the 300 foot level, with the results providing additional information on grade distribution, structural controls and mineralisation variability.

The company plans to incorporate the results into its mine scale 3D geological model ahead of its planned underground diamond drilling program.

Highlights

The sampling program was completed during rehabilitation of the Orleans Mine, with sample lengths ranging from 2.6m to 4.0m.

According to the company, the program complements previously reported vertical sampling and provides a clearer three dimensional understanding of grade distribution, structural controls and mineralisation variability within the Orleans vein.

Previous underground sampling returned results including 64g/t Au and 110g/t Ag, 7.34g/t Au and 574g/t Ag, and 5.61g/t Au and 84g/t Ag.

An initial chip sample also returned 77.9g/t Au and 46.1g/t Ag over 1m from fault breccia adjacent to a historic stope on the 300 foot level.

The latest sampling returned 77.3g/t Au and 102g/t Ag over 3m, together with 3,840g/t Ag and 10.3g/t Au over 3m.

Other significant assays included 27.2g/t Au and 27g/t Ag over 3m, and 1,865g/t Ag and 2.72g/t Au over 3m. The announcement states that the highest grades are associated with brecciated quartz structures and cross cutting subsidiary faults within the main vein fault.

Nelson Non Executive Chairman Gernot Abl said:

“The latest channel sampling results from Orleans continue to demonstrate the high-grade gold and silver potential of the Gold Point Project. By systematically sampling along the exposed vein, we are building a clearer picture of grade variability and structural controls. This work, together with the metallurgical testwork now underway and diamond drilling due to start shortly, positions us well to advance the project through the next phase of evaluation.”

With rehabilitation of the upper levels complete, the company plans to complete up to 15 diamond core holes from underground positions using a Bazooka drill rig.

The program is planned to test extensions of the Orleans vein up to approximately 40m beyond existing workings, including remnant and unmined high grade positions adjacent to historic stopes.

The company also plans to integrate new assay results, geological observations, alteration data, drill cuttings, drill core and underground survey information into its mine scale 3D geological model to refine targets at Orleans and support drill targeting at the Great Western Mine, where rehabilitation planning has commenced.

Nelson has executed an agreement to earn up to a 90% interest in the Gold Point Project in Nevada, USA, which includes more than 5km of underground workings across 5 historical mines.

According to the company, reported pre World War 2 production at Gold Point was approximately 75,000oz Au at an average grade of 20g/t to 30g/t Au, with significant silver production.

According to the company, historical production was largely derived from only 4 of the 15 currently mapped high grade gold silver veins.

The company's near term work program includes finalising underground drill stations, mobilising the core drilling rig, commencing underground diamond drilling, advancing rehabilitation planning at the Great Western Mine, and continuing development of an integrated 3D geological model across the broader Gold Point underground network to support future exploration and evaluation activities.

Assay results from channel sampling completed on the 400 foot level are expected within approximately 2 to 4 weeks, while assays from the maiden underground aircore drilling program are also expected shortly.