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Wiluna Mining up as high-grade gold results continue to underpin stage-1 sulphide strategy

Drilling results continue to underpin the company’s strategy to grow and increase the geological confidence in the high-grade sulphide resources around the existing mine infrastructure at Wiluna.

Wiluna Mining Corporation Ltd - Wiluna Mining Corporation drill results continue to underpin Stage 1 Sulphide Strategy
An updated mineral resource estimation is expected in September 2020 and ore reserves in December 2020

Wiluna Mining Corporation Ltd (ASX:WMX) has received more high-grade results of up to 8 metres at 15.2 g/t from 248 metres, including 5 metres at 23 g/t from resource development and infill drilling at the Wiluna Mining Centre in WA.

The further strong drilling results, particularly at Essex continue, to deliver shallow sulphides into the company's stage 1 sulphide strategy at Wiluna.

Drilling at the Essex and Bulletin targets continue to increase the geological confidence in the high-grade sulphide resources around the existing mine infrastructure, which will allow for rapid and low-cost development of Wiluna.

Delivering into strategy

Shares have been up 15% to an intra-day high of $1.45.

Wiluna Mining executive chair Milan Jerkovic said: “These ongoing outstanding results ‘under the headframe’ are continuing to deliver into our stage 1 sulphide strategy as we initially pursue shallow high-grade sulphides targets.

“The fact that we have now had exceptional drilling results from both Essex and Bulletin is exciting."

High-grade results

Other drill results at Essex include:

  • 8 metres at 5.31 g/t from 168 metres, including 2 metres at 18.12 g/t;
  • 5 metres at 3.95 g/t from 287 metres, including 3 metres at 6.26 g/t;
  • 4 metres at 24.46 g/t from 159 metres, including 1 metre at 94.5 g/t;
  • 6 metres at 16.78 g/t from 174 metres;
  • 5 metres at 3.13 g/t from 199 metres, including 2 metres at 21.30 g/t; and
  • 11 metres at 10.51 g/t from 220 metres;  

Results from drilling at Bulletin include:

  • 7.4 metres at 15.82 g/t from 40.56 metres; and
  • 4.1 metres at 4.88 g/t from 44.15 metres.

Jerkovic said: “Our plan to convert the large sulphide inferred resources at Wiluna into indicated resources continues to gather significant momentum and confidence with every new hole.

“These results will lead to new resource and reserves updates and mine planning work scheduled over the coming months.”

The company intends to provide its update to its mineral resource estimate in September 2020 and ore reserves in December 2020.

Essex high-grade results infilling current inferred and indicated areas

Mine development plan

The company is focused on drilling the sulphide ore bodies in support of the proposed mine development sequence at the Wiluna Mining Centre, which intends to:

  • Significantly increase the confidence in the sulphide resources from inferred to indicated category which will, in turn, underpin the stage-1 reserve estimation;
  • Add valuable tonnes and ounces to the company’s overall mineral resources; and
  • Find new, high-grade shoots that will enhance the ounces per vertical metre and, more importantly, increase the grade.

This will help consolidate stage-1 and enhance the transition into stage-2 which plans to increase production to more than 200,000 ounces per annum of gold dore and gold in concentrate.

“Becoming a Tier 1 gold mine”

Jerkovic said: “Wiluna Mining is a development and growth company currently focused on stage-1 sulphide development by September 2021, as well as expanding our mineral resources and increasing grade to feed into stage-1 and to make new discoveries.

“The current underground sulphide resource at Wiluna averages 4.8 g/t but historically the average grade mined was between 7 to 8 g/t, and the Bulletin shoot alone produced 900,000 ounces at 8 g/t.

“We’re targeting high-grade shoot discoveries because every 1 g/t increase in the grade in the sulphides, could result in an additional 25,000 ounces per annum of production in stage-1 and 50,000 ounces per annum under our stage-2 scenario so grade is obviously extremely important to the project’s economics.

“Our 4-5-year goal with the development of stage-2 is to become a Tier 1 gold mine in a Tier 1 jurisdiction.”

Wiluna Mining Centre showing scale of the operation and latest drill hole locations

Next steps

Currently, the mine plan includes 28% of inferred mineralisation in the first two years when mining is focussed at Essex and Bulletin, and 43% inferred in years three to four when mining extends to Calvert and East Lode.

Seven rigs are currently in operation at Wiluna and the 45,000 metres drilling program expected to be completed by the end of June 2020.

Drilling is now concurrently underway at the Calvert and East West targets with results expected next month.

Quick facts: Wiluna Mining Corporation Ltd

Price: 1.255 AUD

ASX:WMX
Market: ASX
Market Cap: $126.09 m
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