Eureka sits on a mining licence ~50km north of Kalgoorlie within the same greenstone lithological sequence as the world-class >4Moz Paddington gold mine just 20km to the north.
It has previous production of ~32,000oz gold along with an existing resource of 112,000oz of gold, 62,000 of which is in the higher confidence indicated category.
There is significant potential for Javelin Minerals (ASX:JAV) to expand this resource as not only is it open along strike and at depth, historical drilling outside the resource area has also returned ultra-high grade assays such as 4m at 134g/t gold, 3m at 48.75g/t and 4m at 32g/t.
“We have identified numerous highly promising structural and geochemical drilling targets at Eureka,” executive chairman Brett Mitchell said.
“Some of these are supported by high-grade drilling intersections nearby and others represent potential extensions of known mineralisation.
“There is clearly huge potential to create significant shareholder value by testing these targets and ultimately growing the resource.
“Our confidence in the outlook for Eureka is underpinned by the strength of the targets, the mining history, the existing JORC resource and the open mineralisation.
“There is also scope to generate substantial cashflow in the near term by mining the existing indicated resource and therefore we are moving quickly to assess this option.”
JAV acquired the project in late October 2024 from Delta Lithium (ASX:DLI) for $1.5m in cash and 1.5 million of its shares with another $1m worth of shares payable if it restarts mining or delineates a gold resource of at least 200,000oz.
The company quickly moved to reprocess aeromagnetic survey data at the brownfields project and was rewarded with at least a dozen structural and geochemical targets, some of which sit immediately along strike of the Eureka deposit.
Since then, it has submitted the Program of Works and contracted a reverse circulation drill rig from TopDrill.
Drilling is expected to start in early March and take up to three weeks to complete.
It will focus on testing the continuation of high-grade mineralisation over the Eureka northwest zone, expand the supergene zone and to test the continuation of the high-grade up-dip gold zones over the Eureka north zone.
Drill holes will also be tasked with testing the continuation of historical gold mineralisation on the northern margin of the Eureka pit and testing the upward extension of the projected gold mineralisation south of the pit.
Work has also started on plans for near-term mining of the ~30,000oz indicated resource in the southern end of the pit and toll treating it at one of the nearby mills.
