The new mineral resource estimate measures 21 million tonnes at 1.40 g/t for 945,000 ounces gold at Cardinia – a net increase of 2.8 million tonnes at 1.16 g/t for 103,000 ounces from the July 2019 estimate.
New mineral resource estimates were completed for the Cardinia area (Fiona, Rangoon and Hobby deposits), the Mertondale area (Tonto, Eclipse, Quicksilver and Mertondale 5 deposits), and the Raeside area (Michelangelo, Leonardo, Forgotten Four and Krang deposits).
The key focus for the company remains on advancing exploration of the Cardinia Gold Project to enhance pre-feasibility study (PFS) outcomes.
The completed PFS shows positive future returns for the project with a baseline eight-year mine life producing an average 51,000 ounces of gold per annum for the first five years.
Exploration to date
The company completed a program over the Minerie Greenstone Belt during the second half of 2019 to target new deposits within five kilometres of the proposed process plant site with results from Cardinia Hill, Lewis East and Comedy King pointing to a much larger mineralised system at Cardinia than previously defined.
Comedy King aircore results included 12 metres at 14.9 g/t from 4 metres, 4 metres at 8.3 g/t from 20 metres (end of hole), 20 metres at 2.3 g/t from 0 metres, and 12 metres at 2.7 g/t from 4 metres.
Lewis East aircore results included 4 metres at 11.6 g/t from 8 metres, 53 metres at 1.3 g/t from 4 metres (end of hole), and 32 metres at 1.1 g/t from 0 metres.
Cardinia Hill aircore results included 20 metres at 1.4g/t from 8 metres and 24 metres at 1.6g/t from 24 metres (end of hole).
Targeting mineralisation extensions
The company is aiming to continue exploration to enhance project returns, targeting new, high value, higher grade gold deposits close to the proposed Cardinia processing plant site which have the potential to enhance the mine plan.
Extensional drilling of the new discovery areas will resume in the current March quarter 2020 and will target:
- Extensions of high-grade vein style mineralisation at Comedy King
- Strike and depth extensions at Cardinia Hill
- Infill drilling at Lewis East
- Extension drilling of high-grade mineralised positions along the Lewis Fault
Shares are up to 50 cents, an increase from 30 cents on 31 January.