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Tyranna Resources Ltd: DEEP DIVE

Tyranna Resources turns its focus to its gold projects

The company aims to recommence gold production at the Eureka open-pit.
Eureka open pit
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The AUD gold price reached new all-time highs in January 2019 of A$1,850 per ounce

Tyranna Resources Ltd (ASX:TYX) has revealed it will turn its focus to its gold projects in 2019 amid soaring Australian gold prices.

The Eureka Gold Project is located 50 kilometres north of Kalgoorlie in Western Australia and hosts the Eureka open-pit gold mine which was mined as recently as April 2018.

The large-scale Jumbuck Gold Project is in South Australia hosts gold resources within trucking distance of the Challenger Gold Mine.

Finally, Tyranna is also advancing its GoodSprings Cobalt Base Metals Project in the US state of Nevada.

Evaluating recommencement of gold mining at Eureka

The Eureka open-pit gold mine is located 50 kilometres north of Kalgoorlie and was mined as recently as April 2018 producing 50,000 tonnes at 3.3 g/t for 5,400 ounces.

Historical production between 1985 and 1989 totalled 220,000 tonnes at 4.5 g/t gold containing 32,000 ounces.

Tyranna completed a drilling program in late 2018 to update the JORC resource and evaluate the opportunity of mining and toll treating to nearby processing mills.

READ: Tyranna Resources confirms high-grade gold shoot below Eureka open pit

Eureka’s drilling program comprised 2,040 metres for 13 holes and was successful in intersecting the high-grade ore shoot beneath the recently completed open pit.

Diamond drilling was designed to target the interpreted south plunging ore shoot that had been mined in the pit by the previous owners.

Best Intersections included:

• 14 metres at 4.58 g/t gold from 103 metres including 1 metre at 41.80 g/t;
• 4.0 metres at 3.33 g/t gold from 98.0 metres;
• 0.4 metres at 31.0 g/t gold from 170.9 metres;
• 1.0 metre at 7.63 g/t gold from 122 metres;
• 0.92 metres at 5.9 g/t gold from 130.58 metres.

High-grade channel samples across ore at the base of the Eureka open-pit also included 4.0 metres at 20.7 g/t gold and 5.6 metres at 13.1 g/t gold.

READ: Tyranna Resources gears up for more positive exploration news in 2019

Tyranna controls around 9,700 square kilometres surrounding the Challenger Gold Mine in the Western Gawler Craton of South Australia.

In late 2018, it completed a reverse circulation (RC) drilling program at the highest priority Campfire Bore Gold Prospect within the Jumbuck Gold Project.

Campfire Bore is 40 kilometres north of the Challenger Gold Mine, which is owned by Tyranna’s joint venture partner in certain Jumbuck tenements WPG Resources Ltd (ASX:WPG).

Ore could be trucked to the Challenger mill

Notably, Challenger has produced 1 million ounces of gold at 6 g/t gold since 2002 from surface to 1-kilometre depth vertically.

Tyranna’s gold prospects have the potential to be developed into mining operations from which the ore is trucked to the Challenger mill for processing.

Nevada cobalt and base metals project

The Goodsprings Cobalt and Base Metals Project comprises 329 mining claims covering 30.3 square kilometres located within the Goodsprings mining district in southern Nevada.

Due to the lack of any modern exploration, the project area presents attractive opportunities to deploy modern exploration techniques.

During the December quarter, Tyranna completed a stream sampling program over two areas, the Whale Mine and the Anchor Trend.

Tyranna plans to drill up to 5 holes for 1,000 metres at the Whale area to test the structural geologist’s interpretation.

READ: Tyranna Resources agrees to divest non-core asset for $1.5 million

In late January 2019, Tyranna entered an agreement to divest its 18.59% interest in the Wilcherry Project in South Australia and some leasehold land.

Importantly, consideration for the deal was $1.5 million cash which will be valuable capital for Tyranna to invest in its gold projects.

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