The project is located on granted Mining, Exploration and Prospecting licenses forming a contiguous land package of over 20km of strike situated 40km south of Menzies in the Eastern Goldfields of Western Australia. The ground immediately surrounding the current Resource area is subject to an Earn-in JV with Eastern Goldfields Ltd (ASX: EGS).
The project is located at the northern end of the Bardoc Tectonic Zone (“BTZ”), a major greenstone belt between Kalgoorlie and Menzies within the Kalgoorlie Terrane of the Archaean Yilgarn Craton. The tenements border the western edge of the BTZ with all deposits on or adjacent to a major NNW trending strike parallel shear zones varying in intensity from 20-200m wide. This trend continues to the Company’s Menzies gold project area to the northwest.
The Goongarrie gold project was first mined underground when the area was discovered in 1893 and modern mining and exploration was conducted in the 1980s by Julia Mines Ltd leading to the completion of 4 shallow oxide open pits that produced ~35,000oz from shallow open cut mines until 1989.
Intermin has defined and JORC (2012) Mineral Resource Estimate of 270,000t @ 2.9g/t Au for 25,000oz and mining approval activity to create the Company’s second open pit mine are underway.
The most recent RC drill program was completed in November 2016 and returned significant shallow oxide intercept including:
11m @ 5.36g/t Au from 29m including 1m @ 23.60g/t from 33m (GLRC1603)
1m @ 19.90g/t Au from 33m (GLRC1604)
2m @ 5.91g/t Au from 33m and 2m @ 3.01g/t Au from 37m (GLC1605)
Results validated historic results from drill programs in the 1990s and increased geological confidence in the Resource model. A scoping Study is due for completion in the March Quarter 2017 with Feasibility Study work occurring simultaneously and planned for completion in the December Quarter 2017.
Additional RC and diamond drilling is planned in the June Quarter to aid geotechnical and hydrogeological assessment and further improve Resource confidence
The recent program comprised five RC holes for 264m (maximum depth of 60m) and were also positioned to provide representative metallurgical samples from across the known Resource and samples for waste characterisation analysis. The current Mineral Resource Estimate for Goongarrie Lady is predominantly comprised of oxide mineralisation which bodes well for inexpensive toll treatment and mining costs.
The deposit is positioned close to established milling infrastructure with potential ore haulage routes available on an existing suitable road network enabling reduced haulage capital cost estimates. The Paddington mill is located ~60km south, the Davyhurst mill is ~70km west and the Lakewood mill is located ~100km south of the project area.
Key mining approval activities completed or commenced include:
- Granted Mining and Miscellaneous Licence – complete
- Initial Resource Update – complete
- Estimate of mining costs – complete
- Flora and Fauna surveys – complete
- Submission of a Clearing Permit – complete
- Infrastructure and Services requirements – underway
- Estimate of haulage, processing and technical services costs – underway
- Capital cost estimate – underway
- Pit optimisation study and pit design – commenced
- Mining Proposal and Mine Closure Plan – commenced