Javelin Minerals will charge towards production at its 112,000-ounce Eureka gold project outside of Kalgoorlie in Western Australia’s goldfields. The company’s bold plan to fast-track mining at its open pit alongside its exploration program could recover 34,000 ounces of gold, starting within just 12 months.
Javelin’s strategy comes on the back of a recent round of successful drilling, sky-high gold prices and a ready-to-go mining lease.
The company says its negotiations for mining and processing contracts are now materially advanced, and it is lining up third-party partners to process its ore from the southern end of Eureka’s existing pit.
Eureka’s resource is a solid foundation, clocking in at 2.45 million tonnes at 1.42 grams per tonne (g/t) gold for 112,000 ounces, with 62,000 ounces within the high-confidence indicated category.
The company’s 34,000-ounce processing target comes from a portion of the indicated resource nestled within an optimised pit shell. Javelin believes nearby mills, including the heavyweight Paddington operation 20 kilometres away, offer toll treatment options that could see Javelin pouring gold bars without breaking the bank on new infrastructure.
Following a promising maiden reverse circulation (RC) drilling campaign in April, shallow high-grade oxide mineralisation was intersected 100 metres south of the pit and in a high-grade shoot to the north. The hits currently lie outside Javelin’s resource envelope and show promise for follow-up drill programs and potentially mining.
Javelin Resources executive chairman Brett Mitchell said: “Our plan to generate early production and cash flow at Eureka is now the primary focus of the board, which has been endorsed by strong interest from third parties to partner with us for the project’s development in the short term.”
Eureka lies 50km north of Kalgoorlie, in the heart of WA’s Eastern Goldfields, within the prolific Bardoc Tectonic Zone. Sitting just 20km from Zijin Mining’s Paddington operation, the Eureka project benefits from world-class infrastructure and a geological pedigree that’s delivered multi-million-ounce high-grade deposits.
Its granted mining leases remove several major hurdles for the company in its fast-tracking ambitions.
Should Javelin realise its ambitions to quickly recover 34,000 ounces of gold at a near all-time high sale price, the gold could generate about $177 million in revenue for Javelin and its lucky toll-treatment partner.
The company says the drill bits are ready to spin at Eureka by September, as it looks to follow up its gold success. Adding to the mix, it has a potentially game-changing campaign coming up to uncover gold and copper riches at its Coogee West project, just down the road.
With multiple gold and copper targets popping up for Javelin across the Eastern Goldfields, its portfolio is shaping up as a two-pronged approach of growth potential and exploration upside that could be solely funded by early term cash flow from its existing gold riches.
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By Andrew Todd
