Provenance Gold (CSE: PAU) has provided an important update on its ongoing core drilling program at the Eldorado gold project in Malheur County, Eastern Oregon. According to the company, initial drilling results from the first core hole, designated EC-01, have confirmed the presence of gold mineralization extending to greater depths than previously identified.

Provenance Gold’s Chairman, Rauno Perttu, commented in a press release: “The first core hole has already demonstrated the gold mineralization extends much deeper than the depth of approximately 120 meters we went to on holes ED-07 and ED-11 during our RC drilling program last summer. Furthermore, our field work has identified additional mineralized zones well beyond the current and historic drilling. Even though we have 242 historic holes and EC-01 is our 12^th new hole, the gold system remains wide open for expansion with multiple visible gold occurrences over several intervals. We are very pleased with what we are seeing in the core at this early stage. This is an exciting time for our company.”

The first core hole, EC-01, is currently being drilled with an orientation of N10W and a -68° dip, targeting a total planned depth of 300 meters. As of the latest update, the hole has reached a depth of 207 meters, encountering highly altered and mineralized granodiorite. Most notably, visible gold has been observed at multiple horizons, specifically at depths of 30 meters, 108 meters, and 158 meters. These findings are significant as they expand the known mineralization in both vertical and horizontal directions.

The purpose of EC-01 is to test the down-dip extension of a previous reverse circulation (RC) hole, ED-07, drilled in 2023. Hole ED-07 had returned an average grade of 3.085 grams per tonne (g/t) gold over its entire length of 114 meters, ending in strong mineralization before termination. The continuation of gold mineralization in hole EC-01 supports Provenance Gold’s hypothesis that the Eldorado system could contain deeper, high-grade zones of gold.

In addition to testing the depth, EC-01 crosscuts the projected northeast trend of high-grade mineralization, offering a better understanding of the strike extent of the system. The visible gold at multiple intervals further expands the potential of the mineralization along both strike and depth. Logging and processing of the core is ongoing, and the company plans to release additional results as they become available.

The ongoing drilling in EC-01 has provided crucial information regarding the nature of the gold system at Eldorado. Three major findings have emerged from the current depth of 207 meters:

1. Gold Mineralization Not Limited to Breccia Zones: Earlier interpretations of the mineralization at Eldorado suggested that high-grade gold was primarily controlled by breccia zones. However, the core retrieved from EC-01 has revealed that high-grade gold is present in altered granodiorite with disseminated sulphides, predominantly pyrite, and visible gold grains across multiple zones. This discovery suggests that the mineralization extends beyond the previously assumed breccia zone, opening the possibility for a more extensive gold-bearing system.

2. Deeper High-Grade Gold Zones Confirmed: The mineralization encountered in EC-01 extends deeper than previously recognized, reaching 207 meters and suggesting that the gold system is larger at depth. This supports Provenance’s earlier postulation that a deeper, high-grade zone exists within the Eldorado system, providing an encouraging sign for future exploration efforts.

3. Mineralization Characteristics: The core from EC-01 is not heavily silicified, which indicates that the mineralization may result from a lower-temperature event than previously thought. This observation aligns with the company’s previous findings regarding gold recovery. Both recent and historic laboratory testing have shown excellent gold recoveries, confirming that the mineralization characteristics are conducive to successful extraction processes.

In addition to the drilling update, Provenance Gold also announced that it expects to close on the second tranche of its private placement, initially announced on June 28, 2024. The private placement is anticipated to close by October 4, 2024, and has garnered substantial interest from participants, leading to an expectation that it will be over-subscribed.

The company has expressed gratitude to all those who have shown interest in participating in the financing round. The proceeds from this private placement are expected to support Provenance’s ongoing exploration efforts at Eldorado and other projects in its portfolio.