Nov 13, 2024

Australian Gold and Copper Hits 9.1m @ 3.0g/t Au, 698g/t Ag, 1.2% Cu & 19.4% Pb+Zn at Achilles, South Cobar Project, NSW

Introduction:

Australian Gold and Copper Ltd (ASX: AGC) (Market Cap: $54M | Last Close: $0.21 | Cash: $18.6M) has reported significant polymetallic intercepts from its first diamond core drilling at the Achilles discovery within its South Cobar Project in New South Wales, highlighted by 9.1m at 3.0g/t Au, 698g/t Ag, 1.2% Cu and 19.4% Pb+Zn from 126.5m.

Drill Results:

9.1m @ 3.0g/t Au, 698g/t Ag, 1.2% Cu & 19.4% Pb+Zn from 126.5m (including 2.5m @ 6.7g/t Au, 1,625g/t Ag, 0.9% Cu & 18.5% Pb+Zn) (A3DD004)
19m @ 0.3g/t Au, 73g/t Ag, 0.5% Cu & 11.1% Pb+Zn from 92.0m (including 4.5m @ 227g/t Ag & 3.4% Pb+Zn) (A3DD003)
1.6m @ 0.8g/t Au, 96g/t Ag, 1.9% Cu & 34.0% Pb+Zn from 99.0m (A3DD003)‍
1.5m @ 1.5% Cu & 39.3% Pb+Zn from 108.1m (A3DD003)

Project Overview:

The Achilles discovery is located in the southern portion of the Cobar Basin in central New South Wales. It is part of Australian Gold and Copper's South Cobar Project, which represents a significant exploration opportunity in a well-established mining district. The project benefits from existing infrastructure and proximity to operating mines in the region.

The Achilles deposit is emerging as a regionally significant, silver-dominant polymetallic discovery. Mineralization is controlled by the main, north-striking Achilles shear zone when in contact with various rock types in the hanging wall. The current drilling program is focused on defining and expanding the newly discovered shallow mineralization.

Program Details:

The company has completed a ten-hole diamond drilling program totaling 2,756m at Achilles. This follows an extensive reverse circulation (RC) percussion program. The primary aim of the diamond drilling was to improve understanding of structural controls and geometry of higher-grade zones, as well as targeting depth extensions. The first two holes were drilled close to previous high-grade RC results to identify structural controls on mineralization and define grade variability and mineralogy.

Understanding These Results:

The reported intersections represent significant, high-grade polymetallic mineralization at relatively shallow depths. The presence of thick, consistent, very high-grade mineralization close to surface along the length of the deposit is particularly encouraging.

The intercept of 9.1m at 3.0g/t Au, 698g/t Ag, 1.2% Cu and 19.4% Pb+Zn from 126.5m in hole A3DD004 is particularly significant, demonstrating the high-grade potential of the Achilles discovery. The presence of visible massive sulfides, including silver-bearing sphalerite, galena, and chalcopyrite, further supports the strength of the mineralization.

Management Commentary:

Glen Diemar, AGC Managing Director, stated:

“I am so pleased with these results. Diamond drilling has given us new insights into the structural controls and mineralogy of the mineralisation, allowing us to improve future drill targeting. We see thick, consistent, very high-grade mineralisation quite close to surface along the length of the deposit.”

“AGC’s next phase of growth is underway. We are about to kick off a drone magnetic survey to aid in locating additional mineralised structures. Planning is well underway for a large, systematic air core drill program to target additional mineralisation in the near-surface zone. These future programs, along with the work already completed, will significantly increase the discovery potential of the area.”

“Processing of all diamond drill core is now complete as of this week. We expect new results shortly, helping to grow our knowledge of the deposit.”

Next Steps & Catalysts:

AGC is moving to the next phase of exploration at Achilles. A drone magnetic survey is expected to commence within the coming week to aid in locating additional mineralized structures. Planning is also underway for a large systematic air core drill program to target additional mineralization in the near-surface zone.

Processing of all diamond drill core is now complete, with new results expected shortly. These future programs, along with the work already completed, are expected to unlock more of the potential of the area and contribute to growing the company's knowledge of the deposit.

Commodity Outlook:

The polymetallic nature of the Achilles discovery, with significant silver, gold, copper, lead, and zinc grades, provides exposure to a diverse range of commodities. Silver, as the dominant metal, benefits from both industrial and investment demand. The Cobar Basin is a well-established mining district in New South Wales, providing a supportive environment for resource development.

Conclusion:

The initial diamond drilling results from Achilles confirm it as a significant silver-dominant polymetallic discovery. With thick, high-grade intercepts close to surface and mineralization remaining open, the project demonstrates growth potential. Upcoming exploration activities, including geophysical surveys and additional drilling, are positioned to further define the extent and quality of the mineralization.

Sources:

AGC Drill Results Announcement

Additional Figures:

Australia

ASX

Copper

Nov 19, 2024