Shares in gold explorer Carrick Gold closed almost 12 per cent higher today after the company announced the start of pre-feasability studies at it's three open-pit mines north east of Kalgoorlie.
The PFS on the company's Lindsay's, Brilliant and Kalpini gold projects, located within 90 kilometre north east of Kalgoorlie will be carrie dout by Golder Associates.
At close, shares in Carrick had risen 11.97 per cent, or seven cents, to 65.5 cents.
Full announcement below:
WA gold explorer Carrick Gold Limited (ASX:CRK) is pleased to announce it will commence a PFS for the first
stage of open-pit mining operations at its Lindsay's, Brilliant and Kalpini gold projects, located within 90km north
east of Kalgoorlie.
Carrick has commissioned Golder Associates to commence the PFS following positive results from internal studies
completed by the Company.
Carrick Chairman, Frank Carr, said the commencement of the PFS was a significant milestone for the Company.
"This marks a significant step for Carrick in its path to becoming an Australian mid-tier gold producer with
significant scale and initial production targets of 100,000 - 200,000 ounces per annum," Mr Carr said.
"Carrick has, over many years, quietly and successfully established a JORC resource that exceeds 4 million ounces. This is a significant resource position, and the time is now right for the Company to take the next step and proceed towards production as soon as possible."
"The mineralisation also remains open along strike and at depth, and we have fully funded drill programmes in
place to add additional mineable resources. Importantly, the Company is well funded to increase Carrick's world
class gold inventory."
Creation of a New Mining Centre
Carrick currently has a tenement holding of about 450 km2 in the Goldfields region of Western Australia, located
north east of Kalgoorlie. Carrick has already discovered three gold deposits and a host of other exciting prospects
which it will explore while progressing the development of the Lindsay's project.
Carrick has achieved remarkable exploration success and has defined a JORC resource in excess of 4 million ounces at three gold projects.
The majority of gold deposits discovered by Carrick to date are at shallow depth and should be amenable to open-pit
mining. Carrick believes the nature of the Lindsay's Parrot Feathers deposit will allow for a low cost open-pit mining
The long term goal for Carrick is to create a new mining hub within close proximity to Kalgoorlie. The
development of the existing projects will coincide with ongoing exploration activity to prove up more resources
which will underpin additional mining operations. To advance its development, Carrick will be seeking to bolster
its team and is actively seeking experienced staff to join the Company.
Carrick currently has $10.3 million in cash (30 June 2009) which will allow it to fund the PFS and ongoing
Appointment of Financial Adviser
To help advance the development of Carrick's gold projects, the Company has recently appointed RBC Capital
Markets ("RBC") as its financial adviser. RBC will provide financial and strategic advice to Carrick with respect to
the Company's future financing requirements and other corporate matters.
§ Carrick Gold has approved commencement of a Pre-Feasibility Study ("PFS") for open-pit mining operations at its Lindsay's, Brilliant, and Kalpini gold projects
§ Golder Associates appointed to undertake the PFS
§ Carrick has a large 4 million ounce resource, with the Lindsay's project boasting a resource of 2.9m. oz. which the Board believes will sustain a long-term open pit mining operation
§ The commencement of the PFS is a major step for Carrick toward becoming an Australian mid-tier gold producer of between 100,000 to 200,000 ounces per annum
§ Carrick is seeking to progress to production as soon as possible
§ Lindsay's is potentially the first step in the creation of a new gold mining centre in WA's North Eastern Goldfields
§ Carrick has appointed RBC (Royal Bank of Canada) Capital Markets as its financial adviser