8 February 2017
2017 JORC Compliant Resource Estimate
The Company has recently engaged highly regarded mining consultants Optiro to complete a new JORC compliant resource estimate for the Aucu Gold Deposit. The Company expects the new estimate will add to the existing JORC compliant resource of 1.2Mt at 4.2 g/t containing 156,000 ounces of gold.
The existing resource starts at surface and has superb metallurgical characteristics (88.6% of the gold reports to the gravity concentrate and total recoverable gold is 99% via cyanide extraction). The current resource is also amenable to open pit mining.
The new resource estimate is expected to be completed and announced in March 2017.
Metallurgical Test Work
In conjunction with the resource estimate the Company is also conducting a substantial gold and copper metallurgical test work program to better outline potential processing options for the deposit. Provided the metallurgical test work produces the high gravity gold recoveries (88.8% gravity recoverable and 99% total recoverable gold) encountered in previous studies the Company believes that a low cost simple gravity plant could allow the project to provide substantial cash flow within a short time frame.
Mining Optimisation Study
The Company is pleased to announce that experienced mining consultant Dr Evan Kirby has been retained to oversee the compilation of mining study parameters for the upcoming mining optimisation study. Initially Dr Kirby will assist with establishing the appropriate process scale based on the upcoming metallurgical costs followed by detailed costing for plant, infrastructure and operations.
Following the resource estimate a preliminary open pit mining optimisation study using the above mining parameters will be conducted to establish the baseline economics of the project, to form part of an application for a mining license and to assist with optimising future drill programs.
Exploration and Drilling Program – 2017
Exploration planning for 2017 is well advanced with the bulk of planned drilling focussing on extensions to the existing mineralisation. The Company has also planned several new tracks that will cut across the Lower Gold Zone (LGZ) south of the Quartz Zone where several outcropping quartz reefs have mineralised rock chip assay results. The Company will release a formal exploration update once planning is complete.
For further information, please see the link below to today’s ASX announcement.