Pacrim Energy (ASX: PRE) has closed out 2009 with a major upgrade in the gold resource at Golden Terrace South within the Redcliffe Gold Project in the north eastern Goldfields of Western Australia.
The initial resource estimate of 44,000 ounces has been markedly increased by 54% to 68,000 ounces of gold.
Significant mineralised intercepts located to the south of the current resource are yet to be incorporated into the estimate as further data is required.
The recent interpretation of data, incorporating infill and extension drilling, has considerably raised tonneage estimates of mineralisation and as a consequence, will tend to decrease the likely waste to ore stripping ratio.
Following the positive outcome, Pacrim has engaged consulting mining engineering services to coordinate development of the Golden Terrace South mining operation, with the Company anticipating the commencement of gold production in the second half of 2010.
A programme of triple tube diamond drilling is to be undertaken to provide material for further detailed metallurgical test work, confirm interpretations, and provide geotechnical information for detailed pit design.
It is expected by Pacrim that detailed studies currently underway will result in upgrading of the classification of much of the resource to a status facilitating project financing alternatives.
This will assist in limiting the need for further shareholder dilution as the Company moves towards production in 2010.
Sterilisation AirCore drilling has been conducted across areas that were proposed for location of waste dumps and stockpiles. Plus 1g/t intercepts from single metre splits included 1m @ 3.93 g/t, 1m @ 2.94g/t, and 1m @ 1.32g/t require additional drilling to determine the extent of mineralisation.
The Redcliffe Project covers approximately 65 kilometres of strike length of the Mertondale Shear Zone along with
parallel and associated structures.
An estimated 400,000 ounces of gold has been produced from the Mertondale Shear Zone from historic mines and pits that operated in the 1980s and 1990s. These include the shallow Nambi and Redcliffe pits that produced in excess of 90,000 ounces from within the Pacrim project tenements.
The Company’s Redcliffe Gold Project exploration led to the initial resource estimate of 151,000 ounces of gold, consisting of an Indicated Resource of 385,000 tonnes @ 3.42g/t and an Inferred Resource of 1,678,000 tonnes @ 2.0g/t.
This has now been increased to 175,000 ounces (consisting of an Indicated Resource of 1,007,000 tonnes @ 2.72g/t and an Inferred Resource of 1,565,500 tonnes @ 1.73g/t).