Golden West Resources has announced a 230 per cent increase in inferred and indicated gold resource at its Wiluna West project in the Eastern Goldfields.
Golden West Resources has announced a 230 per cent increase in inferred and indicated gold resource at its Wiluna West project in the Eastern Goldfields.
In a statement Golden West said a review of known gold deposits at Wiluna West had raised the company's total gold mineral resource estimate to 3.48 million tonnes at 2.3 grams per tonne for a contained 258,000 ounces.
Golden West has started talks, through its wholly owned subsidiary Aureus Gold, with potential milling facilities.
It is also planning to drill at its Golden Monarch and Eagle deposits.
Golden West Resources' chief executive officer Mark Hine stated the initial development of the Golden Monarch deposit could underpin the establishment of Aureus as a standalone entity.
Golden West Resource shares were up slightly on the announcement increasing 0.5 cents or 67 per cent to 75.5 cents.
See full company statement below:
Golden West Resources (ASX: GWR or the Company) has announced a 230% increase in Inferred and Indicated gold Resources at their Wiluna West project...
A CSA Global review of the known Wiluna West gold deposits, other than the deposits reported upon in March 2010, has raised the Company's total gold Mineral Resource estimate to 3,478,000 tonnes @ 2.3g/t for a contained 258,000 oz at a 1g/t cut off.
The Company, through its wholly owned subsidiary Aureus Gold Limited, has initiated discussions with nearby potential milling facilities.
An infill RC drilling program is being planned for the Golden Monarch and Eagle deposits, for metallurgical test work and aiming to upgrade some of the Inferred Resources to Indicated status.
The previously defined gold deposits represent low exploration risk and are situated within granted Mining Leases. Detailed flora and fauna surveys have already been undertaken as part of the Company's Wiluna West DSO Hematite Iron Ore project.
Pit optimisation studies are also set to commence while consultants, CSA Global, believe there is potential for additional discoveries.
Golden West Resources' Chief Executive Officer Mark Hine stated the initial development of the Golden Monarch deposit could underpin the establishment of Aureus as a standalone entity.
"By gearing up our subsidiary Aureus Gold Limited to commence gold mining, we believe the Company's strategic intention to demerge its non-iron ore assets can be progressed," Mr Hine said.
"We anticipate shareholder value will be enhanced by having these gold assets in production, though our continuing investigations first announced in July last year, will continue to look at a wide range of alternatives to progress this option," he said.
Golden West Resources ("GWR") is entering the pre-production phase for the two-stage mining project planned for its iron ore Resources at the Company's Wiluna West Hematite project located in the Midwest region of Western Australia.
To date the company has a total JORC Hematite Iron Resource estimate of 147.7Mt, comprising of Measured 1.2Mt @ 61.9% Fe, Indicated 49.2Mt @ 60.5% Fe, and Inferred 97.3Mt @ 58.4% Fe making it the second largest DSO resource in the Midwest Iron Ore province.
"Golden West Resources, while welcoming the opportunity to benefit from its substantial gold holdings, will continue to focus its full attention in seeking to have in place all approvals for mining its hematite ore by the end of this year," according to Mr Hine.
