Apex Minerals identifies more high-grade gold at Golden Age orebody, WA

Apex Minerals (ASX: AXM) is set to start mining at the historically rich Golden Age orebody at Wiluna in Western Australia after receiving more high-grade drilling results which have continued to demonstrate extensions to the mineralisation.

The latest results from the drilling program include: 7.15m at 16.3g/t (estimated 1.3m true width), 6.2m at 56.3g/t (estimated 1.1m true width)

The gold-bearing reef at Golden Age has now been intersected in all 16 holes drilled so far, confirming the continuation up-dip of a high-grade shoot within the mineralised reef previously mined.

“The drilling program at Golden Age is still in its relative infancy and we have a significant way to go before we know the full magnitude of what may exist there,” Apex Managing Director Mark Ashley said.

“But the results so far are very promising and warrant immediate development.”

This zone currently measures 80m long by 40m high with an average true width of between 1.2m and 1.5m.

Ashley said work on accessing the ore at Golden Age had started, with first ore expected in April. At the same time, drilling would continue to outline the extent of the mineralisation.

Although the deposit is currently relatively small, it is expected to generate significant margins as a result of it being high grade, free milling (non-refractory) and close to existing underground infrastructure (approx 50m of capital development off the Bulletin decline is required to access the ore body).

The Wiluna processing facility has recently been reconfigured to enable the processing of refractory (i.e. the traditional Wiluna underground deposits requiring BIOX) and non-refractory ores separately.

This was completed to enable the assessment of treating the mostly nonrefractory heap leach material at Wiluna.

The Golden Age deposit has previously produced from underground 547,000 tonnes of ore at a head grade of over 9gpt for 160,000 ounces of gold contained with 150,000 ounces of gold recovered for a 95% recovery. Mining ceased in about 2005.

As a result of the success of this Phase 1 drill campaign, exploration has been extended to further assess the reef system to the east, up-dip and down-dip with the objective of scoping out the extent and continuity of the known mineralization and to add to the mineral resource at Golden Age.

Apex has also updated development elsewhere at the mine, particularly regarding the status of its two newest mining areas, Burgundy and East Lode North.

The improved underground development rates seen in the last quarter have continued and enabled the developed stocks inventory to increase by approximately 35%.

Progress has been made in the East Lode North (ELN), the third independent mining area at Wiluna, with underground development completed, providing access to the deposit.

Most of the first level of ore development has been completed, which has identified several pods of ore not previously included in the reserves. ELN is scheduled to begin stoping in April.

The Burgundy deposit represents the fourth independent mining area at Wiluna. Activities to date have focused on providing access to the deposit. This was achieved in January.

Development on ore has commenced on one level (650), with a second level (625) due to be intersected prior to the end of the quarter. As a result of geotechnical advice, mining at Burgundy will be a bottom-up approach, which has required an increase in the initial capital development compared with the original plan.

However, stoping is scheduled to commence during the June quarter as previously indicated. Recent grade control drilling has established the existence of a previously unidentified high-grade zone with significant results including: 4.3 metres @ 32.5g/t in hole AWD0390, 4.1 metres @ 15.8g/t in hole AWD0391, 5.9 metres @ 11.3g/t in hole AWD0347, 4.9 metres @ 9.2g/t in hole AWD0389.

All widths are estimated true widths. See Appendix 1 for further drilling info.

“Our objective is to have a highly diversified mining centre at Wiluna which will underpin reliable, consistent and flexible production with healthy margins and respectable mine life,” Ashley said.

“The Golden Age drilling intersections are the result of the first exploration program since 2008 and highlight the enormous potential of the area."

“We are pushing ahead with exploration at Golden Age from underground headings to establish whether this could form the basis of a new long term ore source for the Wiluna operations.” Ashley said.