Australian miner Dateline Resources has delivered a significant boost to its flagship Colosseum gold project in California, announcing a series of wide, high-grade drill hits that promise to enhance the project's already robust economics.
Substantial Gold Intercepts Beneath North Pit
The latest reverse-circulation drilling, conducted from the base of the existing North pit, has returned standout results. One hole cut a substantial 132.6-metre interval grading 0.95 grams per tonne (g/t) gold. This broad zone included higher-grade sections, such as 3.05 metres at 3.25 g/t gold and another 3.05 metres at an impressive 7.09 g/t gold.
A second hole intersected 64 metres at 1.24 g/t gold from the pit's bottom, which also contained a higher-grade stretch of 7.66 metres at 3.16 g/t gold. Critically, the grades from these new intercepts surpassed those in the surrounding resource blocks, indicating a likely upgrade to the project's total ounce count.
Strengthening the Feasibility Study and Resource
This drilling campaign is a key part of Dateline's strategy to de-risk the Colosseum project and sharpen its ongoing Bankable Feasibility Study (BFS). The results demonstrate stronger mineral continuity at depth, setting the stage for an upgraded resource estimate expected early next year.
The project already hosts a substantial resource of 27.1 million tonnes at 1.26 g/t gold for 1.1 million ounces, with over 67% in the high-confidence measured and indicated categories. These new hits reinforce the open-at-depth potential and add considerable weight to the BFS, especially with the current gold price around US$6400 per ounce.
Impressive Economics and Additional Upside
Based on a conservative gold price assumption of US$2900 per ounce, Colosseum already boasts a net present value of US$550 million and an internal rate of return above 60%. These figures are poised to skyrocket when modelled using current spot prices.
Beyond gold, the project retains a compelling rare earths angle, with geology similar to the world-class Mountain Pass mine located just 10 kilometres south. The company has plans to drill carbonatite targets that mirror that deposit. Dateline has also recently acquired the strategic Argos strontium project in America, noted for its historical high-grade output and critical minerals potential.
Drilling paused for the US Thanksgiving holiday but is scheduled to resume shortly, with more assay results in the pipeline. With assays still flowing and modelling in progress, Dateline is well-positioned to announce a beefier resource tally and improved project economics, paving a clearer path for Colosseum to advance towards production.
