Janet Ivy South Gold Project (100%)
At the Janet Ivy South prospect, 11 RC holes were drilled for 424m in December 2016 to test an area where Intermin completed rock chip sampling within a pink porphyry host rock that returned anomalous surface gold (up to 3.16 g/t). Quartz veins were regularly noted in outcrop and there has been no historic drilling observed or documented in the immediate area. This was surprising given the close proximity to known gold deposits at Janet Ivy, Fort William and Fort Scott. The abovementioned deposits are currently under care and maintenance (except for mining low grade stockpiles at the Janet Ivy deposit) which is owned and operated by Norton Gold Fields Ltd.
The drill holes were sited close to the tenement boundary along strike from historic workings and three returned highly encouraging downhole intercepts:
3m @ 4.87 g/t Au from 40m (WKRC1603)
2m @ 3.32 g/t Au from 35m (WKRC1607)
2m @ 0.87 g/t Au from 10m (WKRC1610)
The gold is located in fresh, quartz-sulphide veins. Further surface rock chips up to 0.55g/t have also been taken near the southern boundary of P26/3888 (approximately 600m south) of the drilling and demonstrates the potential of this new zone of mineralisation to extend to the south. Further work is scheduled in 2017.
Lehmans Gold Joint Venture (10% free-carried to decision to mine)
The Lehmans Gold joint venture covers 33km2 of the Yandal greenstone belt immediately adjacent to the Thunderbox Gold Mine owned and operated by Saracen Mineral Holdings Limited (ASX: SAR) (“Saracen”). The project is located approximately 45km south of Leinster in Western Australia and the tenements consist of fourteen Mining Leases and two Prospecting Licences in accordance with the Intermin Tenement Schedule.
Intermin retains a 10% interest and is free carried to a decision to mine. Currently Saracen has recommenced mining and processing operations at Thunderbox and are not actively exploring the JV tenure. Recent activity has included work related to mine dewatering into the abandoned Double A open pit and civil construction to support production. Thunderbox is currently on track to pour gold in the June quarter 2016 in accordance with their schedule (refer Saracen ASX announcement dated 10 May 2016).
Calcine Processing Technology
Calcine tailings are the residual product from cyanidation of roasted sulphide concentrates produced prior to WWII from Wiluna refractory gold ores. Extensive laboratory and pilot plant testwork conducted by Intermin in 2011 – 2013 indicated that over 85% of the gold contained in samples of refractory tailings from the formerly owned Wiluna Tailings Stockpile could be recovered via a non-conventional but relatively simple process.
The pilot plant was operated successfully on a batch basis for over twelve months in several modified forms with over 80% gold recovery on a regular basis. Modifications to the plant were primarily to provide engineering data for design of a commercial unit. Progress on the calcine project continued following acquisition of equipment to allow larger scale bench test work. Test work focusing on the evaluation of a number of variants of the process for extracting gold from the calcine has demonstrated the current primary process option remains the most technically viable to date.
Planning and preparation has commenced for the next phase of pilot testwork and to estimate the capital and operating cost of a commercial processing facility.
The technology also has potential for efficient recovery of other metals (Nickel, Copper and Silver) from such feed materials and further work is in progress on this aspect.
Substantial resources of calcine residues exist in Australia and worldwide, representing a significant gold inventory. Technology developed by Intermin for treatment of calcine tailings offers excellent potential for profitable operations based on previously discarded material. Intermin has been engaging with a number of companies with complimentary assets and capabilities with a view to jointly developing the project and technology.
To access samples of typical calcine tailings Intermin previously owned the Wiluna Calcines Tailings Dam which has now been sold to Blackham Resources Limited (ASX: BLK). On the 13 May 2016 Intermin and Blackham Resources Limited executed a formal asset sale agreement with consideration totalling A$1,500,000 in two tranches.
Tranche 1 comprises $800,000 and was paid on execution of the agreement. Tranche 2 payment of $700,000 is due by 31 December 2016 plus interest on that sum at a rate of 8% per annum calculated on and from the date of payment of the first instalment to the date of payment of the second instalment.
All proprietary technology developed by Intermin for processing this type of material has been retained by the Company.