Cauldron Energy reported the intersection of high-grade gold in its current diamond drill program at the Blackwood Gold Project in Victoria. The gold lodes are contained in a westerly dipping geological sequence, with south plunging gold-bearing shoots developed as a result of structural deformation and subsequent injection of gold into structurally-related dilution zones. Drilling is targeting the Annie Laurie reef using underground drill access from the Tyrconnel Adit. The Annie Laurie reef is part of the Eastern Reefs system, with the potentially larger Western Reefs system still to be explored. The drilling program at Annie Laurie is designed to aid understanding of the nuggety and narrow-vein nature of gold in these types of gold lode systems, which is critical for future resource definition. Accessible from the 800m long Tyrconnel Adit, the Annie Laurie lode is the first to be drill tested by Cauldron. Previous underground sampling of the old workings had identified high grade intervals along the old levels and inter-level rises, which has guided Cauldron's interpretation of potentially high-grade plunging shoots. After establishing underground access and sourcing a suitable drilling rig, early challenges were encountered with poor core recoveries, labour shortages (due to COVID) and holes not being able to reach the target. After some perseverance, and using various drilling additives, core recoveries have been improved to 95-100% giving the Company the confidence to continue with the drilling program. Initial holes either did not reach the intended target or intersected marginal low-grade positions on the high-grade gold shoots (i.e., holes BKD001-BKD010). Hole BKD011 intersected a rise that connects the sub-level workings with the Tyrconnel Adit. Its location was not precisely known before. Drilling was able to continue through the rise and intersected low-grade gold mineralisation on the footwall side, 0.35m @ 1.06 g/t Au. Hole BKD012 intersected the target but missed the high-grade gold shoot. Holes BKD013 to BKD015
appear to have intersected the quartz-bearing high-grade gold shoot. Samples from BKD013 and BKD015 are at the Bureau Veritas laboratory and assay results are pending. Results from hole BKD014 are: 0.6m @ 20.1 g/t Au from 20.8 - 21.4m downhole. The mineralisation is hosted by broken quartz veining (which caused early drill recovery problems) within a structurally complex sequence of folded sandstones, siltstones and graphitic shales. Sulphides (mainly pyrite) are often enriched in and around the gold lodes. The hole BKD014 intercept is situated 70m below surface. Drilling is continuing with BKD016 currently in progress. The Company wishes to acknowledge Bureau Veritas, who have turned around gold assays in a very short time to enable the Company to react to results and plan drilling accordingly. Cauldron's ongoing program of drilling at Blackwood will aim to expand and demonstrate the full potential of the goldfield over time, with the drill campaign at the Eastern Reefs being just the first step of the work program. Historic production at Blackwood was undertaken from a number of shafts with extensive underground workings limited to above the water table in most areas. Therefore, the potential for defining a multi-million ounce gold endowment at Blackwood is very good.