Oroya’s faith is rewarded by results

ABOUT 74 kilometres east of Payne’s Find its not the wildflowers that are the major attraction, with junior gold explorer Oroya Mining expecting a second resource upgrade this month for its Mount Gibson gold project.

The results are coming in for the Oroya team, two of which recognised the potential of the territory long before April when they came together on the opportunity to acquire the ground from Sons of Gwalia subsidiary PacMin Mining.

Oroya’s long-term dream of a large open pit to rival the Kalgoorlie Superpit is firming with results indicating the new pit could encompass two former producing pits and several unmined resources.

The underground resource from one of the old pits has been determined at 70,500 tonnes at 10.10 grams of gold per tonne, while the overall project resource is 6,300,000t with an average 2.91 grams of gold per tonne.

A solid 250-hole exploration program over the past six months has boosted another resource by more than 300 per cent, and its gold content by more than 200 per cent.

Led by managing director Steve Shedden and operations director Doug Bright, Oroya is drilling to untested depths and over a wider zone than previously explored.

The results are redefining Mount Gibson as one of WA’s major mineral fields.

“Wherever we test, we are regularly finding high grade mineralisation,” Mr Shedden said.

The company hopes to cash in on its finds with initial production by mid next year.

Oroya’s interim aim, however, is to prove up its resources to as much as 3,000,000t of economic reserve by year’s end.

This should not prove a problem, as the project comprises 24 separate resource areas, and Oroya has released results for just four of these thus far.

Most recent focus has been on premier targets Saratoga and Midway, but Mr Shedden said the company would continue priority ranking of its resources to achieve the desired upgrades.

Showing off an enhanced corporate image in its new Parliament Place office this week, the company recognised its good fortune – the transition to producer status well within sight, following a high success rate in proving the potential of known corridors of mineralisation.

The deal to gain the project is all the sweeter with the inclusive infrastructure – a mill, offices, camps and water supply.

Hence, the cost to get Oroya to production has been put at just $6 million, compared with the average $10 million to $15 million cost of constructing and commissioning new facilities.

Mr Shedden, founding managing director of Gindalbie Gold, this month relinquished his non-executive director’s position with Gindalbie.

PacMin’s original inventory put the Mount Gibson project at 3,900,000t averaging 1.86 grams of gold per tonne.

The project realised 868,000 ounces of gold from 14 open pits mined from the 1980s through to 1999.

Sons of Gwalia is Oroya’s largest shareholder.


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Share Price

Closing price for the last 90 trading days
Source: Morningstar

Total Shareholder Return as at 31/10/18

1 year TSR5 year TSR
7thKangaroo Resources550%52%
263rdSt George Mining8%2%
376thCassini Resources-5%15%
456thExore Resources-18%116%
509thAustralian Potash-24%22%
744 WA (and selected non WA) listed companies ranked by 1 year TSR relative to other companies with similar revenue
Source: Morningstar

Share Transactions

$43k Bought
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Total value as at the date of the transaction
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94th↑Kangaroo Resources$2.0m
95th↑Cassini Resources$2.0m
96th↑Exore Resources$1.9m
97th↑St George Mining$1.9m
98th↑Australian Potash$1.9m
512 listed resources companies ranked by revenue.
Source: Morningstar

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