GME Resources (ASX:GME) should trade higher after drilling at its Devon Gold Deposit in Western Australia defined a near surface, high grade gold zone.
Drilling highlights include 7 metres averaging 24.7 g/t from 23 metres which included 1 metre at 161 g/t gold.
Other results included 7 metres averaging 11.3 g/t from 35 metres, including 2 metre at 36 g/t, and 4 metres averaging 14.8 g/t from 21 metres, which included 1 metre at 55 g/t.
Drilling has confirmed continuity of significant gold grades from surface to 40 metres, with high grade mineralisation strongly developed over 200 metre strike.
There remains upside potential at depth and to the north and the project presents potential low capex, high grade open pit development opportunity. GME is currently progressing economic evaluation together with environmental and mine permitting.
In addition, a non binding term sheet for ore processing has been signed with Saracen Gold Mines (ASX:SAR) which sets out indicative commercial terms of an ore sale/purchase arrangement.
The agreement paves the way to commence discussions on more detailed terms on the arrangement with a view to entering a binding agreement for the delivery of ore to the Carosue Dam Processing Facility.
The Devon project is located five kilometres south of Saracen’s Red October mine and is ideally located to benefit from existing established infrastructure.
