Australian Mines Limited - RC drilling results reveal controls of mineralisation at Dixon ahead of Government co-funded diamond drilling

Australian Mines Limited - RC drilling results reveal controls of mineralisation at Dixon ahead of Government co-funded diamond drilling

Australian Mines has assay results from RC drilling at its Dixon gold prospect, targeting an interpreted high-grade zone along strike of the discovery hole. Results included 4m @ 1.31 g/t from 170m and 3m @ 1.13 g/t from 140m. The company believes the grades and widths of assays are approaching the tenor of other open pits in the region and the drilling confirms that mineralisation occurs along the contact of the magnetic dolerite and basalt unit, increasing the prospectivity of the project.


  • Drill program confirms lithological control of primary gold mineralisation at Dixon  
  • Improves Australian Mines’ ability to target higher-grade gold zones in upcoming programs 
  • Follow-up diamond drilling being co-funded by Western Australian government

Australian Mines Limited (“Australian Mines” or “the Company”) advises it has received the assay results from the latest round of reverse circulation (RC) drilling at its Dixon gold prospect – part of its joint venture with Riedel Resources Limited (ASX: RIE).

The Dixon gold prospect is located within 50 kilometres of Northern Star’s Plutonic Gold Mine and hosted by a similar greenstone belt as that containing the Plutonic and Marymia deposits(1) where the mineralisation often occurs as thin (2 – 4 metre) lodes that grade from 1 g/t gold(2) .

Previous drilling by Australian Mines delineated a mineralised corridor at Dixon that extends for more than half a kilometre and which remains open along strike in both directions(3) (Figure 2). This strike length appears consistent with the gold lodes present within the neighbouring Plutonic Well Greenstone Belt(4) , which are usually several hundred metres long.

In May 2016, Australian Mines commenced a six-hole RC drill campaign at Dixon that was primarily designed to target an interpreted high-grade gold zone along strike of the Company’s 2015 discovery hole(5) .

This recent drilling returned intersections that included 4 metres @ 1.31 g/t gold from 170 metres (DXRC011) and 3 metres @ 1.13 g/t gold from 140 metres (DXRC011), indicating that the gold grades and widths of the mineralisation at Dixon appear to be approaching the tenor observed in many of the open pits across the Plutonic and Marymia operations(6) ,(7).

More importantly, the results from Australian Mines recent drilling campaign confirmed that the gold mineralisation at Dixon primarily occurs along the contact of a magnetic dolerite and a basalt unit. This significantly increases the prospective corridor within the Company’s project area as it suggests that multiple zones of mineralisation may exist along the length of the dolerite – basalt contact at Dixon, which can be traced for 6 kilometres.

Should the trend of increasing gold grades with depth as reported across the Plutonic Well Greenstone Belt(8) be replicated at Dixon, than the Company could expect to encounter higher gold grades at depth whilst retaining consistent gold grades along strike.

Australian Mines therefore plans to drill test the interpreted depth extension of the Dixon mineralisation as part of its upcoming diamond core drill program, which is being co-funded by the Government of Western Australia as part of a $105,000 grant awarded to the Company under the State Government’s Exploration Incentive Scheme(9).

Managing Director, Benjamin Bell commented: “The most telling aspect of the mineralisation revealed by the recently received results is that its thickness, grade and strike continuity appears to approach of a typical open pit gold deposits at the nearby Plutonic and Marymia mining operations.

Having identified the main control of the gold mineralisation at Dixon via the latest drilling and having secured funding from the Western Australian Government, Australian Mines is moving to drill test the interpreted higher-grade zone present beneath the current drilling”.

To view the full announcement click here. 

  1. Northern Star Resources Limited, Plutonic Operations Fact Sheet, http://www.nsrltd.com/wp-content/uploads/2015/06/NSRPlutonic-Operations-Fact-Sheet-May-2015.pdf, 27 June 2016
  2. Dampier Gold Limited, Prospectus, released 19 July 2010
  3. Australian Mines Limited, RC drill results received from Dixon gold prospect, released 18 April 2016
  4. Dampier Gold Limited, Prospectus, released 19 July 2010
  5. Two RC holes (MMRC019 and MMRC020) were also drilled at the Baumgarten prospect, located about 15 kilometres north of Dixon, to confirm an historic gold intersection
  6. Dampier Gold Limited, Prospectus, released 19 July 2010
  7. Dampier Gold Limited considered mineralised material between 1.7 g/t Au and 2.4 g/t Au as having open pit mining potential
  8. Dampier Gold Limited, Prospectus, released 19 July 2010
  9. Australian Mines Limited, WA Government co-funding diamond drilling at Dixon, released 10 June 2016
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