Intermin Resources Limited (ASX:IRC) has grown overall gold resources by 30% to 562,000 ounces at its Kalgoorlie area projects in the WA Goldfields after mining depletion.
A revised estimate of 8.4 million tonnes at 2.08 g/t gold follows a new discovery and resource expansion drilling campaign at the Teal project area, which is just 11 kilometres from Kalgoorlie-Boulder.
Resources at Teal have increased 80% to 4.25 million tonnes at 2.11 g/t for 289,000 ounces.
Intermin’s managing director Jon Price said: “The company commenced a self-funded $4 million, 55,000-metre drilling program in February this year and it has certainly delivered results.
“An 80% increase in resources at Teal at a $14 per ounce discovery cost is not only a testament to the quality of the assets but also the exploration team who have worked tirelessly on target generation and project priorities.”
Shares are up almost 7% to 16 cents.
Since February there have been 182 reverse circulation holes completed for 23,545 metres with the majority of drilling focused on resource growth at the Teal, Jacques Find and Peyes Farm deposits.
More than 85% of the Teal area resource is in the indicated category with mineralisation open in all directions.
The resource for Teal has been depleted to take into account the recently completed Teal stage I and II open cut developments.
Summary of Teal mineral resources at greater than 1.0 g/t gold.
Next drilling phase planned
The next phase of drilling in the Teal area is planned for the March quarter of 2019.
This will focus on building additional resources at Teal West and Teal East and will follow-up encouraging auger results near the Jacques Find and Peyes South areas.
Diamond drilling will also be carried out beneath deep high-grade shoots at Jacques Find and Teal.
Intermin continues to undertake new discovery and resource expansion drilling through a 14,000-metre program at the Anthill project.
Further drilling results and an updated mineral resource estimate is expected in the December quarter.
Intermin’s gold project locations, regional geology and surrounding infrastructure.
Follow-up drilling is also underway at the Crake prospect, which is part of the Binduli project area, with an additional 3,000 metres due for completion in the December quarter.
Maiden Crake estimate upcoming
A maiden resource estimate for the Crake prospect is expected in the March quarter of 2019.
First pass drilling totalling 3,000 metres is also planned at the Coote, Darter and Honeyeater prospects as part of the Binduli program.
A 14,000-metre new discovery program at the Blister Dam project is also planned to start in the December quarter.
Moving closer to 1 million ounce milestone
Price said: “With a significant amount of drilling ongoing at Anthill, Binduli and Blister Dam, the company looks forward to releasing further results and resource updates as we move closer to achieving the significant 1 million ounce milestone.”
Mining studies have started on the Jacques Find, Peyes Farm and further stages of the Teal project focused on open pit development for extraction of the oxide and transitional ore as part of the mining production pipeline.
In addition, metallurgical test work will continue to determine optimal processing pathways for primary mineralisation with further discussions to be held with suitable processing plant owners in close proximity.