The Red Mountain high-grade zinc and precious metals project is the focus for the company more recently with a fully funded exploration program underway.
$8 million 2019 exploration program
The 2019 joint venture exploration program at Red Mountain has a budget of $8 million with plans for diamond drilling, an electromagnetic (EM) survey, field world, and downhole EM.
During the June quarter a 3,000 line kilometre airborne EM survey was flown over the core area of Red Mountain measuring 500 square kilometres.
Processing of this data aims to identify potential volcanogenic massive sulphide (VMS) conductor targets.
This survey and other pre-drilling exploration will be used to generate drill targets for the diamond drilling program underway.
Project already hosts two high-grade deposits
The Red Mountain Project already hosts two high-grade deposits with a JORC resource of 9.1 million tonnes grading 12.9% zinc equivalent for 1.1 million tonnes of contained zinc.
Given the project already hosts these two deposits, this increases the confidence in the drill program’s potential to make a significant discovery that can be economically developed into a mine.
Advanced Mt Carrington project benefits from high gold, silver prices
Mt Carrington is a 100% owned advanced gold-silver epithermal project which had a pre-feasibility study (PFS) completed on it in 2017.
The project hosts a JORC resource of 341,000 ounces of gold and 23 million ounces of silver.
The PFS considered a staged development with stage one focused on gold targeting the JORC Ore Reserve of 3.47 million tonnes grading 1.4 g/t gold for 159,000 ounces.
Stage one forecast producing 148,000 ounces of gold over 4.5 years with capex totalling $35.7 million and an estimated all-in sustaining cost (AISC) of A$1,236 per ounce.
The $AUD gold price is trading at all-time highs this month and is roughly 30% higher than late 2017, when the PFS was completed, making a future mining operation at Mt Carrington more attractive.