Old battery sands may contain up to $4m worth of gold
Investigations by Perth based Terrain Minerals into the history of its mothballed Great Western mine may have uncovered a $4m unexpected windfall for the company.
Terrain has learnt that the old mine which is located about 68km north of Leonora in WA utilized a process whereby the old stopes were backfilled with sands that had been treated at the onsite Battery in order to access higher levels.
The company has learnt that previous owners of the mine accessed samples from these backfill sands on 2 of the 3 levels in the mine and had them tested by the Kalgoorlie School of Mines.
Testing showed an average grade of 4 grams per tonne and it is estimated that there are at least 20 000 tonnes of accessible battery sands on the first two levels, potentially providing the company with a windfall of up to $4m dollars.
Having now completed their June 2015 drilling campaign, Terrain have just released an updated resource estimate for the Great Western Deposit that includes 669 000 tonnes of ore grading 2.92 grams per tonne, now upgraded to meet Jorc 2012 standards.
The company says that it has received a lot of unsolicited offers to either sell or joint venture the project and they will now move to set up a data room for the purposes of sharing information with potential suitors.