Sign up Australia
Proactive Investors - Run By Investors For Investors

EganStreet Resources hits bonanza grades of up to 129.2 g/t gold in extensions to Rothsay project

The diamond drill results may lead to an increase in the project’s 1.42 million tonnes at 8.8 g/t for 401,000 ounces of contained gold.
Drilling at the Rothsay project
A new reverse circulation drilling program is planned at Rothsay

EganStreet Resources Ltd (ASX:EGA) has received bonanza grade hits of up to 129.2 g/t gold from drilling of southern extensions to the Rothsay project in Western Australia’s mid-west.

There have been 10 holes completed in a 16-hole, 4000-metre diamond drill program targeting potential southern extensions of the Woodley’s and Woodley’s East Shears.

This program is well advanced and already generating highly encouraging initial results, which point to extending the resource south in both extensions.

Strong first assays

First assays include 0.97 metres at 129.2 g/t gold from 73.0 metres; 2.58 metres at 22.6 g/t from 150.55 metres; and 0.4 metres at 14.8 g/t from 131.7 metres.

Given the results, infill drilling in the area has potential to increase the Rothsay resource of 1.42 million tonnes at 8.8 g/t for 401,000 ounces of contained gold.

A geological cross-section showing intersections.

Advancing Rothsay towards development

The drilling is one of a number of work programs underway aimed at advancing Rothsay towards commencement of construction and development.

Initial site-based civil works are scheduled to begin as early as next month, with major construction activities scheduled for the first quarter of 2019.

First gold from the project, which is 300 kilometres northeast of Perth, is targeted for quarter four of 2019.

READ: EganStreet Resources’ feasibility study confirms high-margin gold mine plan for Rothsay

This work follows the recent completion of a positive definitive feasibility study (DFS), which confirmed the potential for a low-cost, high-margin project capable of delivering strong financial returns.

The company has only recently been granted permission to drill in the southern portion of the tenement, due to mining tenement conditions that previously restricted drilling.

This program began at the start of August and a further four holes have visible gold logged within the shear quartz veins, with these assays still pending.

READ: EganStreet Resources to continue gold exploration at Rothsay project after high-grade finds

Initial visual results from the drill core have so far been encouraging, with the Woodley’s Shear intersected with quartz veins in six of the holes.

The visual observations are consistent with the geological model for the Woodley’s and Woodley’s East Shears.

EganStreet also hopes it will also aid in resolving the southern stratigraphy as restricted drilling and lateritic cover limit the geological interpretation.

Woodley’s Shear showing significant and recent intersections.

Once diamond drilling is complete a reverse circulation program of around 2,000 metres has been designed and to test the shallower up-dip positions of the shears in the southern portion of the tenement.

Project development

Procurement of major packages for the development of the project is progressing well.

Contract proposals for civils, camp accommodation & NPI, water & wastewater, power generation, communications and process plant have been received and are being reviewed.

Underground mining contract procurement will start in the December quarter.

EganStreet’s project team has appointed an experienced construction manager as the project continues to ramp up.

Approvals process

The updated mining proposal, mine closure plan and project management plan have been submitted to the DMIRS for approval consideration.

Major works approval and licence application is in the final stages of completion with submission expected in mid-September.

Finance engagement

PCF Capital Group, the company’s financial advisor, has started engagement with a range of financing groups.

A Financing Information Memorandum outlining the Rothsay opportunity has been provided to assist these groups with understanding the project in more detail.

An agreed financing solution is anticipated to be completed over the coming months.

View full EGA profile View Profile

Egan Street Resources Ltd Timeline

Related Articles

August 08 2018
The company has a joint venture with Nova-Bollinger owner Independence Group that could allow the bigger company to snap up its prospective nickel projects in South Africa.
Electric cars charging
August 31 2018
ABM is also actively evaluating additional projects which it believes have potential to significantly advance the company's stated strategy of focusing on battery materials
August 07 2018
Production at Hellyer is expected to begin in the fourth quarter

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