The 53,000-ounce gold increase comprised of a 45,800-ounce increase to the Indicated resource and a 7,200-ounce increase to the Inferred resource.
Notably, the overall grade of the global resource at the project has increased to 9.2 g/t from 8.8 g/t gold.
Egan Street’s managing director Marc Ducler said: “This latest increase in Resources paves the way for further growth in production and free cash flow at Rothsay,
“This resource upgrade came in at a discovery cost of $30 per ounce and since the listing of Egan Street, our discovery cost has averaged $35 per ounce.
“The consistency of these metrics provides further confidence that the Rothsay Gold Project will deliver value well beyond our initial production target published in July 2018.
“With the main Woodley’s Shear increasing to 342,000 ounces at around 11 g/t gold, these high-grades underpin the high margins we expect once in production.”
The 53,000-ounce increase is principally from shallow extensions to the main Woodley’s Lode into areas that have historically been poorly, or not at all, tested, as well as identification of additional mineralisation on the Woodley’s East hanging-wall lodes.
The resource increase is the result of successful infill and extensional drilling completed since the last JORC resource upgrade in May 2018.
Mine design update commenced, drilling continues
The increased resource estimate and strike extensions to the north and south will feed into an updated mine design and Ore Reserve which has commenced.
Furthermore, a 5,000-metre reverse circulation (RC) exploration drilling program is ongoing, targeting potential opportunities at the Orient and Clyde East Shears, where there is good potential to identify new resources.