Intermin Resources (ASX:IRC) has received assays from its five hole, 264 metre reverse circulation program at its 100% owned Goongarrie Lady gold project located 90 kilometres from Kalgoorlie-Boulder in Western Australia.
Significant shallow oxide intercepts include 11 metres at 5.36 g/t gold from 29 metres depth.
The results validate historic results from drill programs in the 1990s and have increased geological confidence in the resource model allowing it to advance to the next phase.
The project is shaping up as the next development opportunity after the Teal Stage 1 gold operation which will be in production this month despite heavy rainfall in the goldfields.
A scoping study at Goongarrie Lady for the development of a shallow open cut mine with ore haulage and treatment at third party facilities is on track for completion in the current March quarter.
Jon Price, managing director, commented:
"Goongarrie Lady is shaping up nicely as our next project in the production pipeline after Teal Stage 1 and has the potential to become a shallow low strip ratio oxide pit with good grade and lower capital development costs."
Drill result details
Drill results are from a reverse circulation drill program completed in the December quarter at the 100% owned Goongarrie Lady gold project.
Significant shallow oxide intercepts include:
- 11 metres at 5.36 g/t gold from 29 metres including 1 metre at 23.60 g/t gold;
- 1 metre at 19.90 g/t gold from 33 metres;
- 2 metres at 5.91g/t gold from 33 metres; and
- 2 metres at 3.01g/t gold from 37 metres.
The five-hole program was also positioned to provide representative metallurgical samples from across the known resource and samples for waste characterisation analysis.
Intermin has a number of quality gold assets in the world class gold mining region surrounding Kalgoorlie-Boulder in Western Australia.
The company’s flagship projects are the 100% owned Menzies and Teal projects which host significant mineralisation and have the potential to be mined via open cut and underground methods.
The Teal Stage 1 open pit gold mine within the Teal project represents a near term opportunity for gold production.
The small open pit gold project is capable of producing 15,567 ounces of gold over 9 months for a capital cost of $3.9 million.
The company also has interests in a vanadium-molybdenum project in northwest Queensland.
The Goongarrie Lady project is located on a granted mining lease within the prospective Bardoc Tectonic Zone that extends north from Kalgoorlie to Menzies.
The current JORC resource stands at 270,000 tonnes grading 2.9 g/t for 25,000 ounces of gold and is predominantly comprised of oxide mineralisation.
Julia Mines Ltd mined a small oxide pit at the Goongarrie Lady deposit in 1989 with 28,606 tonnes grading 2.7g/t gold extracted before a pit wall collapse and flooding event caused the cessation of mining.
The current resource will now be re-optimised using the latest costs and metallurgy test work has commenced to confirm historical recoveries in the low to mid 90s.
Key activities underway at Goongarrie Lady include:
- Infrastructure and services requirements;
- Estimate of haulage, processing and technical services costs;
- Capital cost estimate;
- Pit optimisation study and pit design; and
- Mining proposal and mine closure plan.
With mining at the Teal Stage 1 open pit operation scheduled to begin this month, Goongarrie Lady provides Intermin with a valuable opportunity for a second near-term gold mining operation.
Statutory approval activity for mine development is well advanced and a number of key activities are underway at the project.
Furthermore, the deposit is positioned close to established milling infrastructure with potential ore haulage routes available on an existing road network enabling reduced haulage capital cost estimates.
Three mills are located within 100 kilometres of the project with the Paddington mill located 60 kilometres to the south and the Davyhurst mill located 70 kilometres west.
Intermin shares are up over 70% over the past 12 months, currently trading at $0.12.
Investors remain leveraged to news flow in the short term regarding:
- Teal production/mining updates;
- Regional exploration results; and
- New regional exploration targets and drilling plans.
Further resource confirmation drilling, quality assessment and a geological interpretation review is planned upon completion of the current engineering scoping study to identify areas of the deposit requiring additional data.