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Coolgardie’s new theory tested at Bullabulling

Coolgardie Minerals boss Bradd Granville is hopeful a new geological theory has helped the ASX-listed junior unravel the secrets of the Bullabulling goldfield.

A rarity for a junior listing on the Australian market, the company already operates the new Geko gold mine, about 25km west of Coolgardie in the WA Goldfields.

But it sees room to grow the project further because the firm believes previous drilling has been aimed at the wrong structures.

Targeting ultramafic contacts near the Geko mine, rather than the historically tested Bullabulling shear, Coolgardie Minerals believes higher grade drill results outside the Geko pit design have given support to its new exploration thesis.

Mr Granville said the early success, which included an intersection of 10m at 2.62 grams per tonne from 136m down hole, will give the company confidence to test the theory across its expansive 550sqkm landholding.

“Typically the exploration in the region has been done on what has been known to be the Bullabulling shear but our new interpretation suggests the mineralisation is more about the contact with the ultramafic which sits in most places well east of the interpreted Bullabulling shear,” he said. “That’s the theory that we’re working on, this first initial exploration program we’ve really designed to test that theory and we’ll extrapolate that to our other targets on that 550sqkm of ground we have.

“It’s only a four-hole program at the moment to test some structures but it certainly looks promising at this point.”

Coolgardie Minerals’ immediate aim is to add more ounces and value to the Geko open pit, where mining began in October with an estimated ore reserve of 91,900 ounces at 1.8 grams per tonne.

It will be mined throughout 2019, with the company’s first revenue from an ore sales agreement with Northern Star Resources expected to arrive soon. About 50-55 people are working at the mine, mainly with contractor SMS Mining.

But Coolgardie Minerals, which counts former Coolgardie Gold and Barminco boss Neil Warburton as its chairman, is also hoping to use cash from the mine to drill further and deeper in the quest for a bigger gold system in a region that hosts Norton Gold Fields’ 3Moz Bullabulling deposit.

The new understanding of the project’s geology will help with moving forward, according to Mr Granville

“We’re certainly looking at all our exploration targets in a new light and we’ll apply this structural theory to all our exploration programs going forward,” he said.

Coolgardie shares closed up 0.5¢ or 4.2 per cent to 12.5¢.

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