This is an increase of 125% over the previous estimate of 310,000 ounces of gold.
90% of the new resource is in the indicated category which, subject to the completion of a feasibility study, may be converted to ore reserves.
The relatively close proximity of the project to Perth, as well as the ready availability of infrastructure required for project development, are both of considerable value to the project.
John Lawton, managing director, commented:
“This new Tampia Mineral Resource estimate has exceeded our expectations and the target assumed for the 2016 Scoping Study, which supported development of a proposed standalone mining operation exhibiting strong economics.
“We expect to be in a position to announce results from an updated Scoping Study, including initial project economics in October.”
Resource update highlights
Most of the new resource is less than 100 metres below surface, and comes to surface in three locations.
Simple resource geometry indicates future mining potential may enjoy an unusually high conversion of indicated resources to reserves (+90%), and a low strip ratio.
The new estimate is based on 287 drill holes (36,339 metres), drilled on an area 1,040 metres along strike by 550 metres, down dip to a depth of 140 metres.
The resource has a number of attractive features for future development including shallow, high-grade gold mineralisation exhibiting excellent continuity and a well understood and simple resource geometry.
An updated scoping study including optimisation and mine scheduling studies based on the new resource will be completed in October 2017 to indicate initial project economics.
Explaurum has started planning to drill around the resource area to test for extensions to gold mineralisation to the southeast and at depth.
This drilling is expected to commence in early October.
There will be a focus on drilling all of the 24 regional targets (including three major targets) before the end of March 2018.
This work will involve grid auger drilling over the entire area of each anomaly followed by reverse circulation drilling, to establish which targets could potentially host additional resources.