The IGO Limited (ASX: IGO) share price is struggling today, down 2.07% to $10.65.
The mining and resources giant is facing resistance as investors respond to a company update on the Burracoppin gold project. This includes the results from the Exploration Incentive Scheme (EIS) co-funded diamond drilling at the Crossroads prospect.
Moho Resources Ltd (ASX: MOH) and IGO formed an unincorporated 70:30 joint venture (JV) to explore the site. Under the agreement, if warranted, the JV may extend to developing and mining and IGO can convert its 30% stake to a 10% free carried interest.
Burracoppin is located in the WA wheat belt, about 22km west of the Edna May gold mine. Let's take a look at what the JV released today.
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What was announced today?
The IGO share price is falling after an update was provided by Moho regarding the exploration status of Crossroads. Moho outlined the diamond drilling program has been completed, with 4 diamond holes drilled totaling 630 metres.
Three holes had numerous Intercepts of gold more than 0.1g/t Au and confirmed previous reverse-circulation (RC) drilling outtakes.
Moho summarised that three positive gold assays from diamond drilling. These included 0.89m @ 0.79g/t Au from 75.91m, 1m @ 0.49 g/t Au from 29.2m, and 1m @ 0.41 g/t Au from 55.5m.
In addition, another 3 holes intersected significant silver mineralisation, including 2.4m @ 8.50 g/t Ag from 12.4m.
Moho says consultant geochemist Richard Carver of GCXplore Pty Ltd has reviewed the data generated by drilling programs to date and made several observations about the gold prospectivity around the Crossroads prospect.
For instance, Carver surmised that drilling to date covers only part of the strongest auger gold anomaly. He also found there is weak auger gold anomalism about 400m to the west of the drilled area, and that the anomalism extends south from the drilled area to the large magnetic high about 1,200m southeast of the drilled area.
Carver also concluded that northwest of the drilled area no gold anomaly has been detected due to limited soil data. He also found the anomalous gold trend may still exist as "it is likely that the cover is thickening as the system drains in that direction".
Finally, Carver noted that two gold zones are evident at the crossroads prospect, with a broader north-south striking western zone of at least 50m width of mineralised bedrock present with shallow easterly dips.
Next up, Moho and IGO under the JV will undertake follow-up air-core drilling around the Crossroads prospect.
IGO share price summary
Despite some recent turbulence, the IGO share price has still boasted an outsized 68% return in the last 12 months. It has also rallied around 66% this year to date.
It has reached a series of all-time highs in the past month and is well ahead of its benchmarks across longer-term time frames.
