Wiluna (ASX:WMX) share price rises on further gold discoveries

The Wiluna (ASX: WMX) share price is up 1.5% today after the company discovered more high-grade gold drilling zones.

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The Wiluna Mining Corporation Ltd (ASX: WMX) share price is lifting today after the company discovered more high-grade gold and sulphur drilling zones near its existing mine works.

At the time of writing, the Wiluna share price is up 1.52%, trading at $1.00 per share.

Wiluna is a Perth-based gold mining company that controls more than 1,600 square kilometres of the Yilgarn Craton in the Northern Goldfields of WA. It owns 100% of the Wiluna mine, which is the 7th-largest gold district in Australia under single ownership.

Yesterday, Wiluna revealed its stage 1, 750 kilotonne-per-annum flotation plant construction and mine development, in addition to a series of other projects, were all on schedule. 

High-grade results

The company’s Wiluna mine has four mining zones named Starlight, Essex, Golden Age, and the Calvert and East Lode. The Golden Age zone is proving a winner, revealing “exceptional” high-grade extensions.

These results were discovered from an additional 30 holes and 8,218m of drilling. The gold discoveries are expected to enhance head grade (the gold content) at the current operation as large open-pit stockpiles continue to contribute to the major portion of processing feed.  

But today’s announcement is focused on the discovery of additional high-grade drilling results at the mine’s Starlight and Essex zones, which were discovered close to existing mine workings in the Wiluna headframe. The headframe is the structure above the mine shaft, which allows the hoisting of equipment.

Wiluna’s current zone mine production

The Essex zone is currently producing 2.35m @ 61.05g/t including 0.37m @ 313g/t (visible gold logged). The Essex zone is one of the shallow, high-grade sulphide ore bodies that Wiluna is focused on during its early mining stages and is delivering “visible gold intersections at numerous holes”.

The Starlight zone is producing 5.04m @ 6.09g/t; and 2.17m @ 9.45g/t. Another shallow depth mine, Starlight is showing high-grade sulphur intersections. This zone is located only 200m away from the existing underground mine development, which Wiluna says could be rapidly brought into production at low capital cost.

Meanwhile, the Golden Age zone is producing 6.58m @ 2.44g/t including 0.50m @ 15.50g/t as is providing the bedrock for the current Wiluna share price recovery.

Wiluna share price snapshot

The Wiluna share price has fallen steadily from a high of $2.18 on 23 September 2020 to its current level.

Despite today’s gains, Wiluna share price is down 6.7% this week, 13% this month and 27% this year to date.

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Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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