Javelin Minerals has bolstered its plans for near-term mining at its Eureka gold project north of Kalgoorlie in Western Australia, having significantly upgraded the resource in the higher confidence indicated category.
The company says it has boosted its indicated resources 27 per cent to 78,678 ounces of gold, with the beefed-up resource delivering a 16 per cent hike in grade to 1.69 grams per tonne (g/t) gold.
Javelin says it is now primed to fast-track Eureka towards a contract mining scenario at the southern end of its Eureka pit, potentially pouring gold from a toll treatment mill within 12 months.
The company’s latest upgrade clocks in at 2.04 million tonnes of resources at 1.69 g/t for 110,687 ounces, with the lion’s share - 71 per cent - now sitting in the high-confidence indicated category.
A hefty chunk of the upgraded indicated resource lies directly beneath the southern end of the Eureka pit, the focal point of Javelin’s near-term mining strategy. The company has its sights set on extracting about 34,000 recoverable ounces from this zone, but with the fresh 78,678-ounce indicated resource, Javelin is assessing whether to expand its production profile, as gold prices hold well above $5000 per ounce.
The company says its recent drilling campaign was instrumental in confirming thick, near-surface oxide mineralisation 100 metres south of the pit, as well as a high-grade northern shoot. Both features lie outside the new resource upgrade.
Javelin Resources executive chairman Brett Mitchell said: “We are planning further exploration drilling with the aim of growing the resource and upgrading more of the inferred ounces to indicated. There is now overwhelming evidence that the upside at Eureka is extremely strong, both on the exploration and production fronts, and we have a great opportunity to generate significant shareholder value.”
Javelin says it is in advanced talks with contract mining and processing operators and is eyeing toll treatment options at nearby mills, such as Zijin Mining’s Paddington operation, 20km south of Eureka.
The existing Eureka pit appears in primo condition for a historic mining operation. Sitting on four granted mining leases in Australia’s most active goldfield, the deposit looks primed for Javelin to leverage WA’s fast-track approvals to kick off mining next year. Javelin could then cash in on the mouthwatering gold prices on offer for even small-scale mining operations.
Nestled in the Bardoc tectonic zone, the project sits a stone’s throw away from multi-million-ounce deposits such as the Paddington and Ora Banda’s Davyhurst mines.
The deposit’s quartz vein-hosted gold, embedded in sheared mafic rocks, has historically delivered high-grade hits, with past intercepts including 4m at 134 g/t and 3m at 48.75g/t.
The southern pit’s oxide and transition zones, hosting 15,774 and 17,812 ounces respectively, are key to Javelin’s near-term plans.
The shallow high-grade zones are ideal for contract mining, which would minimise the company’s capital outlay while maximising returns from a free-dig open-pit mining scenario.
The company’s studies are now being recalibrated to assess whether the additional 16,678 indicated ounces can boost the 34,000-ounce mining target.
Looking ahead, Javelin is gearing up for a new drilling campaign by next quarter, targeting down-dip extensions and an enticing 1.1-kilometre strike potential to the north.
As the company balances near-term cash flow with exploration upside, the all-important toll treating agreement will be key as punters wait to see if Javelin can upgrade its resources into a near-term cash cow in WA’s no.1 gold address.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Andrew Todd
