Resources & Energy Group Limited (ASX: REZ or the Company) advises that drilling operations at the Gigante Grande Prospect will resume on Wednesday 9th June. The work will be targeting a number of structures which have been identified from exploration completed to date, with emphasis on resource generation.

Drilling Activities

Since October 2020, the company has completed 44 holes at Gigante Grande for an advance of 6007m. The drilling activities completed so far have identified an extensive vein and shear hosted gold system within the Gigante Granite along its contact with the Moriarty Shear Zone.

The mineralised zone is up to 300m wide, has a strike length of at least 1400m and is open to the north, south and west. Broad zones of ore grade mineralisation have been intersected in this area from depths as shallow as 11m. The resource remains untested below 200m.

The mineralised structures are interpreted to be associated with a steeply dipping high rheological contrast zone between the Gigante Granite on the west and Greenstones on the east. In general, the productive gold zone runs North South through the entire length of the Gigante Grande prospect area.

Within this zone the structural pattern emerging is one characterised by the primary North -South Moriarty Shear zone, and subsidiary “S” shears which splay NNW off the MSZ and into the Gigante Granite. Along its length the MSZ and the “S” shears are themselves offset by secondary East-West “T” shears, refer figure 1. Mineralisation appears to be associated with the confluence of “S” and “T” structures which act as a structural trap.

Gigante Grande is highly prospective. Thirty holes including 4 holes drilled previously by Paddington Gold have intersected gram level gold mineralisation. Collectively, 100 intervals of mineralisation ranging in thickness from 1 to 27m, with an accumulated thickness of 434m, has been intersected so far. This represents approximately 7% of the total drilling metres completed at the prospect by the Company to date. At a COG of 0.3g/t Au these mineralised intervals have a combined weighted grade of 2.29gt/au. These results are strong indicators that the Gigante Grande Prospect offers potential to a support an exceptionally large, and shallow, open cut gold mining operation.

Read the full announcement here.

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