Tyranna Resources has announced it is about to kick off a resource development drill program at the Eureka gold project north of Kalgoorlie, after acquiring the historic project outright earlier this month. The work will lead to the estimation of a JORC compliant mineral resource later this year. The company will then instigate a feasibility study to evaluate the opportunity for mining and toll-treating the ore.
Tyranna Resources is gearing up for its maiden resource development drill program at the historic and now re-invented Eureka gold project near Leonora after completing acquisition of the project earlier this month.
The company recently awarded the drilling contract and will commence a 3,200 metre program for 20 drill holes, starting in mid-September, taking about 3-4 weeks to complete.
The program is primarily aimed at bringing the historical mineral resource at Eureka up to JORC-compliant standard, specifically targeting the position of an interpreted high grade ore shoot beneath the existing open pit.
On completion of an updated mineral resource estimate, Tyranna will then be in a position to instigate a feasibility study for the project, to evaluate the opportunity of mining and potentially toll-treating the ore at nearby mills.
The resource drilling has been planned for some time and has been highly anticipated by Tyranna followers.
Historical mining at Eureka only exploited near surface ores, without a serious dip at the underground potential of the deposit.
Two exploratory declines were started by previous owners in 1996, however the low gold price at that time effectively stymied the economics of continuing mining.
Tyranna Managing Director Bruno Seneque said: “The Company plans to systematically unlock the gold production potential of this exciting gold asset. The drilling program will be the first step forward. We are located in one of the world’s premier mining districts and surrounded by toll processing facilities and first-class infrastructure.”
The drill program will follow up on historical high-grade intercepts, but will also test extensions of the mineralisation further north.
Tyranna describes the acquisition of the Eureka gold project as a transformational step, moving the company from a pure explorer to a potential producer by using a growth strategy that is focussed on near-term production and cash flow.