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Sinclair Gold has intersected further high-grade mineralisation beyond the existing resource boundaries at its Mt Henry gold project in Western Australia, as a five-rig drilling campaign targets another increase in the project’s 1.8 million-ounce resource.
The latest results include 5.4m at 15.4 grams per tonne (g/t) gold from 192m, including 0.4m at 122.7g/t, and 9.8m at 3g/t from 352m.
Further drilling has identified mineralisation beyond the northern and southern resource boundaries, including a 39.6m intersection grading 1.4g/t gold from 176m in the north.
To the south, drilling returned 6m at 5g/t gold from 160m to the end of the hole, including 1m at 25g/t gold, extending mineralisation towards the Birthday Gift prospect.
The intersections were reported after the September quarter and follow a resource upgrade announced on 14 September, which doubled the project’s contained gold to approximately 1.8 million ounces.
Speaking after the resource upgrade, Sinclair Gold chief executive officer (CEO) Jeff Sansom said drilling had already moved beyond the expanded resource boundaries.
“We still see plenty of growth from here. Both Mt Henry and Selene remain open, we are already drilling outside the current MRE, and we have assays pending from 25 holes drilled beyond the Resource,” Sansom said.
“There is still a lot more drilling to do across both deposits, and this all points to further growth.”
Sinclair’s updated resource stands at 47.9 million tonnes grading 1.2 grams per tonne gold for approximately 1.79 million ounces, including 1.26 million ounces in the higher-confidence Measured and Indicated categories.
Approximately 90 per cent of the contained gold lies within 200m of the surface, although the company has also intersected mineralisation more than 480m below the surface at Mt Henry.
The resource estimate incorporates 20,426m of drilling completed by the end of July, compared with 32,578m completed by the end of September.
Assays were pending from approximately 30 holes drilled outside the resource boundaries at Mt Henry and Selene when Sinclair issued its October quarterly report.
The two deposits each contain approximately 0.9 million ounces of gold and remain open along strike and at depth.
Sinclair plans to use the outstanding assays and continued drilling to inform its next resource update, targeted before the end of the 2026–27 financial year.
The company finished September with $24.8 million in cash, down from $38.3 million at the end of June, after an underlying quarterly cash outflow of $8.7 million.
Exploration expenditure at Mt Henry accounted for $7.4 million of that outflow, while one-off transaction-related payments contributed a further net $4.8 million to the overall reduction in cash.
Sinclair also completed a royalty funding transaction during the quarter, receiving total cash consideration of $5 million and four million shares in Arc Mineral Royalties in exchange for a one per cent net smelter return royalty over Mt Henry.
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