Spectactular gold intersection by Barra

A previously unexplored section of a Western Australian gold mine has yielded one...

  A previously unexplored section of a Western Australian gold mine has yielded one of the most spectacular gold discoveries in Australian resources history.The exceptional high grade hit yielded 10,300 grams per tonne (g/t) gold – or over 10 kilograms per tonne – as part of a high grade intersection from deep drilling by Barra Resources Ltd on the company’s wholly-owned Burbanks underground mine near Coolgardie in Western Australia. The intersection, over 0.21m, was part of a longer 4.69m intersection that graded a spectacular 462.1g/t gold in Hole BBUD329.“I have been drilling for two decades in and around the Kambalda – Kalgoorlie gold province and cannot recall any intersection of this magnitude,” Barra’s Managing Director, Mr Dean Goodwin.“Barra will now intensify its drilling campaign around this new discovery as it is nowhere near Burbanks’ previous historical underground workings and is well below current mine development,” Mr Goodwin said.The hole is the deepest ever drilled on the field, encountering the intersection at 350m depth. Its drilling was only made possible by the completion by Barra in recent months of its extensive decline development at Burbanks in readiness for a resumption of full scale production next year.The company has been conducting continuous and intensive infill drilling to add to its reserve inventory after producing more than 27,000 ounces of gold this year, halting production only in August to allow greater focus on the decline and development work, which in turn allowed first time access to deeper mineralisation.“It was only because the decline work provided new drilling platform opportunities from depth that we could even access deeper and until now, unexplored areas below the mine,” Mr Goodwin said.“This is a stunning intersection and we believe is associated with a totally new reef located approximately 50m west of the eastern reef system and about 100m below Burbanks’ historical high grades on the 7 level. “Significantly, there has been no drilling anywhere in the vicinity of Hole BBUD329 and it remains wide open. “As it is also the first of six holes scheduled to drill test deep targets well below the 7 level, the massive gold showing is a great confidence booster for what potentially lies in wait.”Mr Goodwin said drilling had now been halted for the Christmas break but would recommence in the second week of January.The discovery is the second major gold development for Barra this week in the Kambalda region.The company also announced a 70% farm-in to the gold rights of Breakaway Resources’ acreage just to the northwest of Ramelius Resources’ high grade Wattle Dam gold mine near Coolgardie. The tenement area includes the historic Spargo’s Reward gold mine.Mr Goodwin said the company was close to finalising its forward gold strategy for 2008 and expected to make an announcement shortly, including the schedule for a new resource upgrade, based on results from current drilling.