7th Nov 2014 08:39
LONDON (Alliance News) - Austria-focused miner Noricum Gold Ltd saw its shares slide Friday after it warned that progress had been slow at its first diamond drill hole in Weissenbachgraben in the Schonberg gold and precious metals project.
The company said ground conditions and equipment problems meant drilling progress has been slower than expected and there had been a deviation of 16 degrees at its first diamond drill hole, WE1. The drill reached a target depth of 328 metres, samples are being analysed and the drill rig will now be moved north to drill a second diamond drill hole at Weissenbachgraben, which is likely to give a better angle, the company said.
The company said minor gold and tungsten anomalism was noted in its six reverse circulation drill holes completed to date.
"The potential of tungsten mineralisation, often associated with gold in these environments, is encouraging," said Managing Director Greg Kuenzel, adding that a simple inspection of the core in UV light will be followed by multi-element analysis.
One drill hole intersected a large void, likely to have been caused by old mine workings, the company said.
The Schonberg project covers a total of 37 square kilometres and is located approximately 30 kilometres southwest of Leoben, Austria and 100 kilometres east of the company's Rotgülden gold and precious metals project.
In early trade, shares in the company were down 32% at 0.26 pence, making it the worst-performing stock on the AIM All-Share index.
By Ian Edmondson; [email protected]
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