E79 Resources (ESNR.C) has released the assay results from the first two holes drilled on its Myrtleford project in Victoria, Australia. Hole 2 contained 0.7 meters of 99 g/t gold but the real eye-catcher was hole number 3 with 0.6 meters of 147 g/t and then a miraculous interval of 11.1 meters containing 160.45 g/t gold including 0.6 meters of 2430 g/t gold (no decimal points were forgotten) and 3 meters containing 126 g/t gold.

While the headline result of 160.45 g/t gold is obviously boosted by the ultra high-grade interval of more than two kilos of gold but after isolating the 0.6 meters and 3 meters, the residual grade in the 7.5 meter section is about 7.3 g/t gold. Much lower than the headline result but clearly not barren at all so it is understandable why E79 reported this as one long mineralized interval of 11.1 meters.

The location of the hole is also very interesting as it intersected the gold structure 80 meters below a historic mine which was part of the Happy Valley mining centre where about 34,000 ounces gold were produced at an average grade of about an ounce of gold per tonne. Definitely a good start of the drill program and we are looking forward to seeing the assay results of the next few holes. We don’t expect those to beat the assay results of hole 3, but we can likely expect the drill bit to encounter more high grade gold mineralization.

Disclosure: The author has a long position in E79 Resources but could sell stock at any given time. Please read our disclaimer.

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