23/06/2021 - 14:30

Positive results for gold projects

23/06/2021 - 14:30

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De Grey Mining and Bellevue Gold have released drilling results that support the planned development of two major new goldmines in Western Australia.

Positive results for gold projects
De Grey has 12 drilling rigs at the Hemi project. Photo: De Grey Mining

De Grey Mining and Bellevue Gold have released drilling results that support the planned development of two major new goldmines in Western Australia.

De Grey has announced a maiden mineral resource for its Hemi project.

The Pilbara project has a total mineral resource of 192 million tonnes grading 1.1 grams per tonne, for 6.8 million ounces of gold.

This comprises an indicated resource of 2.8moz and an inferred resource of 4moz.

The company said these estimates provided a strong platform for a scoping study targeted for completion in the September quarter of this year.

Technical director Andy Beckwith said Hemi was an exceptional new gold discovery that was redefining the gold potential of the Pilbara.

“De Grey’s exploration team has taken Hemi from discovery to a tier-one scale 6.8moz gold deposit in a short timeframe,” he said.

“RC and diamond drilling commenced only 15 months ago and further extensions are expected at each deposit as drilling continues.”

The company has 12 drill rigs focused on expanding Hemi as well as testing targets within 150-kilometre land package.

Managing director Glenn Jardine said the Hemi resource was substantial and exceeded initial expectations.

“We are committed to increasing the resource base with ongoing drilling programs,” he said.

Project studies, including metallurgy, geotechnical, mining, environmental, infrastructure and hydrogeology are also continuing, as the company progresses its scoping study.

De Grey said the overall ‘finding cost’ at Hemi was about $8.50/oz, which was well below the industry average of $20/oz.

Meanwhile, Bellevue Gold has announced drilling results that it says will pave way for further increases in resources and reserves at its Goldfields project and underpin an upscaled mining operation.

The project currently has a mineral resource of 8.5mt grading 9.9g/t for 2.7moz of gold.

The company said drilling had identified significant extensions at the Deacon North and Marceline lodes, with the extensions expected to add further ounces at a low level of capital intensity.

Due to the location of the discoveries, it expects they will deliver a significant increase in the project economics for the upgraded stage two feasibility study.

In light of the latest drilling results, the updated feasibility study is considering the option of expanding the production plant capacity from 0.75mtpa to 1mtpa at start-up.

“These results are entirely consistent with our goal of growing the production rate and project economics for a minimal increase in the capital cost,” managing director Steve Parsons said.

“Given the strength of these latest results and the fact that we incorporated significant scope for growth in the original costings, we are looking forward to completing the stage two feasibility study.”

In other gold news, Rox Resources has reported a 39 per cent increase in the gold resource at its Youanmi project to 1.7moz.

Managing director Alex Passmore said the updated Youanmi resource was a milestone for the company and demonstrated the project’s strong potential.

“The company is very pleased with both the expansion of the Deeps Resource as well as achieving a considerable increase in inventory to the Near Surface Resource areas including some spectacular results at Grace, which contains 109,000 ounces at an average gold grade of 7g/t Au at shallow depths,” he said.  

“An overall increase in gold resources of 39 per cent is a great result, as is the $16/oz discovery cost realised to achieve these results.”

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