Intermin Resources (ASX:IRC) has received high-grade drill results from its 100%-owned Goongarrie Lady gold project 80 kilometres north of Kalgoorlie-Boulder in Western Australia.
The results demonstrate the potential for increased ore production beyond the 14,700 ounces of gold estimated in the 2016 scoping study.
Highlights from the reverse circulation and diamond infill program include 6 metres at 14.35 g/t gold from 30 metres and 12 metres at 6.97 g/t gold from 31 metres.
Jon Price, managing director, commented: “The excellent results at Goongarrie Lady have provided increased confidence in the geology and demonstrate potential for an increased production profile.
“We look forward to releasing the maiden Reserve and the feasibility study results early in the March Quarter.”
Drill result details
The program was part of the open pit feasibility study and comprised 121 reverse circulation and six diamond drill holes for a total 5,912 metres and 368 metres respectively.
- 6 metres at 14.35 g/t gold from 30 metres;
- 12 metres at 6.97 g/t gold from 31 metres;
- 12 metres at 5.99 g/t gold from 49 metres;
- 7 metres at 8.06 g/t gold from 57 metres;
- 12 metres at 4.04 g/t gold from 31 metres;
- 15 metres at 2.80 g/t gold from 17 metres;
- 4 metres at 10.37 g/t gold from 20 metres;
- 8 metres at 5.50 g/t gold from 34 metres;
- 18 metres at 2.33 g/t gold from 21 metres; and
- 4 metres at 12.27 g/t gold from 40 metres.
Purpose of the drilling
The drilling was completed to bring the Resource into the Measured JORC category for the estimation of a maiden Reserve as part of the feasibility study due for release early in the March quarter.
The current JORC resource stands at 270,000 tonnes grading 2.9 g/t gold for 25,000 ounces of gold.
Hydrogeological, geotechnical and metallurgical diamond drilling was also completed and approvals for development are well advanced for a development decision in the March quarter.
Results have exceeded expectations
Drilling results have exceeded expectations and demonstrated the potential to grow the project from the scoping study results of 14,700 ounces of production for $7-8 million net cash.
Goongarrie Lady is shaping up to be Intermin’s next producing mine after Teal completion in March.
This will enable continuous production at ~20,000 ounces per annum generating ~A$10 million in free cash flow at $500 per ounce cash margin.
Intermin plans to release the feasibility study results for both Goongarrie Lady and Teal Stage 3 in the coming March quarter.
Further drilling results are also to come from Anthill, Blister Dam, Baden Powell and Jacques Find / Yolande.
The company's key growth strategy is centred on discovery and resource expansion through exploration while generating near-term cash by developing gold projects via third-party infrastructure.