Gold explorer Doray Minerals has reached a milestone as it attempts to bring its Andy Well mine into production next year, unveiling a maiden high grade gold reserve today.
Doray today said Andy Well contained 570,000 tonnes at 12.8 grams of gold per tonne, for 235,000 countained ounces.
The company is currently compiling a bankable feasibility study to confirm the viability of the project.
Doray hopes to start mining at Andy Well later this year, with first gold production mid-way through 2013.
“this maiden high grade open pit and underground mining reserve is another important milestone in the progression of the Andy Well project towards development and comes just two years after the discovery drill hole and just over a year since the maiden Wilber Lode resource,” managing director Allan Kelly said.
“With an average open pit grace, across two open pits, of almost 15g/t and an average underground mined grade of just under 13 g/t, which takes into account all dilution related to minimum mining widths, this project represents a fantastic near-term production opportunity for the company.
“We also believe there is substantial near-term upside at Andy Well with the recent results from the nearby Judy Zone confirming our long-held belief that there exists the potential for multiple deposits within the project.”
Doray stocks were steady on the ASX today, trading at 86.5 cents.