Company and Mining

27 April 2017


  • 2017 Aucu Gold Exploration underway
  • Targeting increases to the high grade 302,000 Oz Deposit
  • Bull dozer and field crew dispatched to Aucu Gold Project site
  • Metallurgical test work and Mining optimisation study update

The field crew and a bulldozer have been dispatched to the project site to clear access tracks and to initially focus on developing drill tracks/pads at the Quartz Zone where drilling in 2016 identified 244,000 tonnes at 9.5 g/t gold containing 75,000 ounces of gold from surface to 100 metres depth.

The Quartz Zone appears to extend at least 200 metres further south east of the existing drilling. Outcropping mineralised shear zones occur in a track cutting 50 metres southeast of the existing drilling with channel sample assay results of 2 metres at 5.4 g/t and 1 metre at 0.7 g/t gold within sandstone. Quartz veins outcrop a further 100 metres southeast of the channel samples.

Bulldozer tracks currently extend 50 metres south east of the last Quartz Zone drill line and will be extended down the hill to cover the additional 200 metres of strike. The 2017 Phase one drill program will consist of approximately 1,200 metres Reverse Circulation drilling between, 70 and 130 metres deep, at the Quartz Zone. It is anticipated that drilling will commence as soon as sufficient drill pads have been constructed.

Subsequent drill programs will be conducted at the north western end of the Lower Gold Zone where drilling identified 6 metres at 38 g/t gold in LGZ15-29a. This target is hosted in a quartz vein having the same orientation as the Quartz Zone. The vein has been mapped along strike for 250 metres. Several bulldozer tracks and drill pads need to be completed prior to drilling and these will be constructed once the Quartz Zone dozer program is completed.

Also during the 2017 field season the Company is also planning drilling to test extensions of the remaining resource zones (Sandstone, Upper Gold Zone, Camp Gold Zone and Eastern Gold Zone). Details of these drilling programs will be released later in the field season.

Metallurgical Test Work and Mining Optimisation Study Update

The Metallurgical test work being conducted by Bureau Veritas Minerals in Perth is nearing completion. The results will be reported once complete.

The Mining optimisation study being conducted by Mining Consultants Optiro Pty Ltd is currently underway. The study will establish how much of the existing shallow high grade gold resource could potentially be extracted via an open pit mining operation. This study will consider the relevant capital expenditure required to build an economic mining operation. The study results will be reported once complete.

Aucu Gold Deposit-Inferred Resource Summary

In April the Company reported an updated inferred resource reported in accordance with the JORC Code (2012) for the Aucu gold deposit (refer to ASX announcement 21 April 2017). The estimate above a cut-off grade of 1 g/t gold is:

1.8 million Tonnes grading 5.2 g/t gold, for 302,000 ounces of contained gold. The new resource represents a 93% increase in contained gold ounces and a 23% increase in average grade over the previous gold resource reported in April 2015.

Importantly the new resource contains a new very high grade zone (Quartz Zone) of 244,000 tonnes at 9.5 g/t gold containing 75,000 ounces of gold, which starts at surface. Surface extensions of the high grade Quartz Zone have been identified and will be drilled in the coming field season.

This latest resource estimate also identified a new inferred copper resource reported in accordance with the JORC Code (2012), above a cut-off grade of 0.25% copper, of 608,000 tonnes at 0.64% copper, containing 3,870 tonnes of copper.

The new gold and copper resources start at surface, have only been drilled to 100 metres vertical depth and remain open along strike and at depth.

The reported gold resources represent less than 5% of mineralised faults identified by rock-chip sampling to date. Approximately 95% of the mineralised faults identified by rock chip sampling are still to be drilled. The gold bearing mineralised structures extend beyond the current resource estimate area over a length greater than 3,000 metres and occur as multiple lodes (Figure 1).


Figure 1: Location map of drilling showing Inferred gold resources (red hatch) that represent ~5% of the identified mineralised faults. 95% of the mineralised faults identified by rock chip sampling are still to be drilled (dashed blue and green lines)

For further information, please see the link below to today’s ASX announcement.

ASX Announcement