Cortona Resources (ASX: CRC) main focus is the Dargues Reef Gold Project at Majors Creek in New South Wales.
At a spot price of A$1,550 per ounce the project is forecast to deliver free cash flows of around A$112 million and a post-tax NPV (8% discount) in excess of A$75 million dollars.
Cortona Resources releases high grade drill results at Dargues Reef
by Ross Louthean, www.mineweb.com
The junior explorer Cortona Resources (ASX:CRC) came out of a self-imposed trading halt after releasing bonanza hits that enhance the scope of its gold project in the Majors Creek field in NSW
The discovery of a high grade gold lode on the Dargues Reef project was expected to pave the way for a resource upgrade for the project.
Drill hits included 5.7 metres grading 97.1 grams/tonne gold (including 3.8m @ 143.6 g/t); 2.8m @ 39.1 g/t; 5.5m @ 14.4 g/t and 13.2m @ 10.9 g/t.
The existing resource at Dargues Reef is an indicated and inferred 1.44 million tonnes grading 6.2 grams/tonne for 286,000 oz.
"This is a great result which highlights the opportunity to grow this resource even further," commented Cortona Resources Ltd (ASX: CRC) managing director, Peter van der Borgh.
"The width and grade of the intersection within this bonanza zone is among the best you'll see anywhere in the gold sector and testament to the quality of the Dargues Reef mineralised system
"The widths and grades of mineralisation elsewhere in the system are also excellent, as reflected by the results we continue to receive from ongoing resource drilling."
Three holes intercepted the Main Lode, while the two deeper holes also hit the multiple lode system which is developing at depth, and includes the bonanza zone.
Cortona currently has five drill rigs on site. About 30 holes have been completed as part of its Phase 1 drilling, with Phase 2 exploration drilling currently underway.
The new phase, which will comprise a parent hole with five or six "daughter" holes wedged from it, is targeting depth extensions to the current resource, and is expected to be completed by mid-June.
The company has completed the acquisition of a further 120 hectares of freehold farmland that adjoins Cortona's existing freehold property, and provides the company with a range of significant strategic benefits relating to water, mine infrastructure, access and exploration.
The mine site layout plan has been completed. Cortona recently submitted a Preliminary Environmental Assessment (PEA) for its proposed mine, and then met with representatives from various NSW Government agencies.
Metallurgical test work is nearing completion, and Cortona is finalising a process design flow sheet that is estimated to deliver about 50% of gold to a gravity circuit and about 48% to a sulphide concentrate grading about 30 g/t gold, with silver and copper credits.
Majors Creek was the largest historic alluvial goldfield in NSW producing more than 1.25 million oz.
Cortona plans to develop Dargues Reef to produce 45,000 oz per annum over an initial mine life of five years.
