Osino Resources Corp (Osino) says it is bullish about its Eureka greenfield exploration project after the discovery of significant gold mineralisation during ongoing exploration work.
The gold exploration and development company, said there has been no previous exploration in the area and there are no known local gold deposits.
“We have just scratched the surface of this new gold project; the mineralisation is open in all directions and there are several additional targets which remain to be drilled. We are very bullish about Eureka and what it could mean for the development of a new gold district, including Osino’s Ondundu project 35km to the southwest and WIA Gold’s recently discovered Kokoseb deposit a further 50km to the southwest,†Osino’s VP Exploration, Dave Underwood said on Wednesday.
He said the Eureka licence was identified in 2019 as part of a regional target generation exercise based on structure and geology.
“There has been no previous exploration in the area and there are no known local gold deposits. The license was initially explored using soil and rock chip sampling, which produced a gold anomaly at the surface,†Underwood said.
“The first two scout holes into the anomaly intersected wide zones of gold, including 29m @ 2.69g/t, from the surface. These two holes were quickly followed up with nine holes, step-out diamond drill programme which again intersected gold in several holes including high-grade shoots of 47m @ 5.92g/t and 18m @ 4.70g/t.
“This greenfield discovery in an area of no known gold occurrences is a testament once again to the target generation ability of the Osino team and the effective, systematic exploration our team is known for. The high-grade shoots intersected in holes ORD004, ORD005 and ORD006 are an exciting surprise, and unusual in the Namibian gold deposit context. The core is spectacular with numerous visible gold grains in a sulphide matrix breccia,†he added.
Eureka Gold Project is located 35km northeast of Osino’s Ondundu deposit, which it acquired last year from B2Gold for a total consideration of N$257.3 million in a deal where B2Gold Mining Investments Limited agreed to receive Osino Resources Corporation shares in lieu of cash.
The project was first discovered in 1917 and has a long history of mining and exploration. The first gold was noted in the area in 1917 by European explorers and between 1922 and 1964 approximately 20,000oz of gold were recovered by small-scale miners on various mining claims in what is now known as the Ondundu Main Zone.
The company is actively exploring a range of gold prospects and targets along the belt by utilizing a portfolio approach geared towards discovery, targeting gold mineralisation that fits the broad orogenic gold model.
Osino Resources needs to invest N$6.8 billion (US$365 million) towards the development of its Twin Hills mining project in Namibia, according to the company’s definitive feasibility study (DFS) results released in June.
The Canadian gold mining firm is projecting the mine to go into production towards the end of 2025 or early 2026.
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