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Alliance Resources scoping study confirms positive and robust gold project at Weednanna

Gold mineralisation at Weednanna remains open along strike and there is substantial potential to increase the existing mineral resources.

Gold element tile
The existing mineral resource is 1.097 million tonnes grading 5.1 g/t gold for 181,000 ounces of gold

Alliance Resources Limited (ASX:AGS) has completed a scoping study that confirms a positive and robust gold project at Weednanna, west of Whyalla in South Australia.

The independent study incorporates a new 250,000 tonnes per annum gold processing plant and tailings storage facility (TSF) with approximate capital costs of $36 million.

This study was completed by Mining One Pty Ltd and was designed to examine the potential viability of the mineral resources at the project to support the construction.

Alliance managing director Steve Johnston said: “The directors are delighted with the results of the study and have determined that the outcomes provide strong encouragement for Alliance to commit to the next stage of its exploration and development program.

“To this end the company advises that drilling, to extend the mineral resource and to infill the inferred mineral resources in order to increase the ratio of indicated mineral resources, has already commenced.”

Using the mineral resource estimate recorded in 2018, Mining One conducted open pit and underground mine designed and schedules to a scoping level of accuracy.

The surface infrastructure has been located outside the foorpritnt of the former conceptual iron pit of previous tenement holder Ironclad Mining Ltd, to ensure the iron resource remains an option to be mined in the future.

The process plant and tailing storage facility (TSF) are also located outside a nominal 600 metres radius blast exclusion zone.

Next steps

Given the positive outcomes of the study, the company has begun further drilling to:

  • Infill the inferred mineral resources in order to increase the classification to indicated mineral resources; and
  • Define the limits of and extend the existing gold shoots and explore for new gold shoots within the deposit.

The aim of this work is to develop knowledge of the deposit to a level which will support a higher level study, to increase mineral resources and to commence the project approvals process.

This work program is expected to take 12 months to complete.

Quick facts: Alliance Resources Ltd

Price: 0.15 AUD

Market: ASX
Market Cap: $26.75 m

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