Sign up Australia
Proactive Investors - Run By Investors For Investors

Egan Street Resources upgrades Rothsay gold resource to 400,000+ ounces

This resource upgrade will underpin the imminent feasibility study and the maiden ore reserve.
gold on the elementary table
The Rothsay Project has a rich mining history

Egan Street Resources Ltd (ASX:EGA) has increased the gold resource at its 100%-owned Rothsay Gold Project in Western Australia’s Midwest region to 401,000 ounces.

The 31% increase stems from a combination of successful infill and extensional drilling completed since the last resource update in December 2017 and a reduction of the cut-off grade.

The increased resource comprises 1.42 million tonnes at 8.8 g/t gold, reflecting the high-grade nature of the Rothsay Project and its strong potential to be a low-cost, high-margin project.

Importantly, the key Woodley’s Shear resource has increased to 296,000 ounces of gold, representing 74% of the total resource.

READ: Egan Street Resources attracts $11.9 million to fast-track Rothsay Gold Project

The Rothsay Project has a rich mining history dating back to the discovery of gold in 1894 and includes several phases of mining, most recently by Metana Minerals in the early 1990s.

In May 2017, EganStreet published a pre-feasibility study (PFS) estimating a production of 201,000 ounces over an initial 5.5-year mine life at an all-in sustaining cost (AISC) of A$1,020 per ounce.

Definite feasibility study due this quarter

The latest resource update is currently being incorporated into a new mine design and schedule, which anticipates larger ore drive development and associated larger mining equipment.

This is expected to have the effect of increased mine productivity with a lower unit cost.

EganStreet’s increased resource estimate will feed into the Rothsay Definitive Feasibility Study (DFS), which is targeted for completion in the current quarter.

Regional exploration program continues

With the increase in the resource, EganStreet is confident that the DFS will deliver a larger mining inventory, with multiple mining zones providing greater operational flexibility and ore throughput.

The company is also continuing its regional exploration program in parallel with work on the DFS.

This work consists of regional assessment of targets to prioritise areas for further work and will involve following up recently completed and historic drilling intersections.

View full EGA profile View Profile

Egan Street Resources Ltd Timeline

Related Articles

September 20 2018
Kodal Minerals is moving rapidly to work up the Bougouni project in Mali
periodic table
September 10 2018
W Resources should be in production from La Parrilla next year
Picture of a copper car
May 01 2018
Based on 2018 projections, Aeris will have reduced debt from US$136 million to US$49 million over the last five years.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use