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White Cliff Minerals boosts high grade Aucu gold deposit

Published: 11:00 24 Apr 2017 AEST

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Less than 5% of identified mineralised faults have been drilled

White Cliff Minerals (ASX:WCN) has posted a 93% increase to its JORC resource at its 90% owned Aucu gold project located in the Kyrgyz Republic of central Asia.

The high grade Aucu gold deposit now stands at 1.8 million tonnes grading 5.2 g/t gold for 302,000 ounces of gold.

The new resource estimate represents a 23% increase in gold grade and also includes a Inferred copper resource of 608,000 tonnes grading 0.64% copper for 3,870 tonnes of copper.

Todd Hibberd, managing director, commented: “The current gold resource outcrops at surface and has only been drilled to 100 metres depth.

“The high grade encountered in the deeper holes indicates that mineralisation will continue at depth. Gold mineralisation is still open in both directions and at depth.”


Resource upgrade

The new Inferred JORC resource for the Aucu gold deposit above a cut-off grade of 1 g/t gold consists of 1.8 million tonnes grading 5.2 g/t gold for 302,000 ounces of contained gold.

This new resource represents a 93% increase in contained gold and a 23% increase in average grade over the April 2015 inferred gold resource.

Importantly the new resource contains a high grade zone referred to as the Quartz Zone of 244,000 tonnes at 9.5 g/t gold containing 75,000 ounces of gold which starts at surface.

Surface extensions of the Quartz Zone have been identified and will be drilled in the coming field season.

Additional near surface high-grade gold resources are expected to be outlined from this program.


Copper resource

A new inferred copper resource has been identified above a cut of grade of 0.25% copper of 608,000 tonnes at 0.64% copper containing 3,870 tonnes of copper.

This new copper resource is contained within the new gold resource areas and would be mined as part of an open pit gold mining operation.

The new copper resource at Aucu adds to the existing inferred resource at the Chanach copper deposit which consists of 10 million tonnes grading 0.41% copper for 41,000 tonnes of contained copper.


Next steps

White Cliff is currently conducting a mining optimisation study to establish how much of the current resource could potentially be extracted via an open pit mining operation.

This study will consider the relevant capital expenditure required to build an economic mining operation.

The company is also conducting a substantial gold and copper metallurgical test work program to better outline potential processing options for the deposit.

Finally, exploration planning for 2017 is well advanced, with the bulk of planned drilling focussing on extensions to the existing mineralisation.


Analysis

This is a successful result with the inferred gold resource at Aucu almost doubling alongside a significant increase in the average gold grade of the resource.

The resource upgrade is a product of a successful 2016 drill program and is a clear indication of the present and future potential of the Aucu gold project.

Significantly, the 2017 drilling program has strong potential to expand the high grade Quartz Zone, which has an average gold grade of 9.5 g/t gold.

Mineralisation at Aucu outcrops at surface and has only been drilled to 100 metres vertical depth with the current resource open at depth and along strike.

The current resource represents less than 5% of identified mineralised faults with the remaining 95% yet to be drilled.

The quality of the current resource combined with the rock chip sampling of the extensive mineralised systems signals the growth potential of Aucu.

News flow is expected regarding the metallurgy test work currently underway and the 2017 exploration program.

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