New Murchison Gold (ASX: NMG) has announced high-grade gold results from control holes at its Crown Prince ore body in Western Australia. The company recently appointed Derek Humphry as CFO and Kim Gundersen as general manager of operations to advance the project. The initial results following these appointments indicate a successful increase in the grade and thickness of the caprock resource at Crown Prince. The caprock resource now contains 40,873 tonnes at 1.41 grams per tonne of gold, totaling 1,858 ounces. The grade control program suggests that the mineable material is likely to outperform previous expectations. NMG drilled 212 short vertical grade control holes to refine the grade within the lateritic caprock above the Crown Prince ore bodies and plans to incorporate these results into a new grade control model before mining commences.
According to CEO Alex Passmore, the shallow high gold grades exceeded expectations in the caprock zone. The company intends to update its resource model, grade control model, and short-term mining plans. In early April, New Murchison finalized an ore purchase agreement (OPA) between its subsidiary Zeus Mining and Westgold Resources (ASX: WGX) subsidiary Big Bell Gold. Westgold will purchase 30,000 to 50,000 tonnes of gold ore per month from the Crown Prince deposit. Originally planning to stockpile the caprock, New Murchison is now likely to include the material in the next shipment to Westgold under the OPA.
