Goongarrie – Au

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 but excluding 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.

An RC infill drill program was completed in October 2017 (167 holes for 8,447m) and returned significant shallow oxide intercepts including:

  • 6m @ 14.35g/t Au from 30m (GLRC17064); 15m @ 2.80g/t Au from 17m (GLRC17025)
  • 12m @ 6.97g/t Au from 31m (GLRC17042); 4m @ 10.37g/t Au from 20m (GLRC17050)
  • 12m @ 5.99g/t Au from 49m (GLRC17046); 8m @ 5.50g/t Au from 34m (GLRC17032)
  • 7m @ 8.06g/t Au from 57m (GLRC17036); 18m @ 2.33g/t Au from 21m (GLC17095)
  • 12m @ 4.04g/t Au from 31m (GLRC17014); 4m @ 12.27g/t Au from 40m (GLC17116)

In 2018, Intermin defined a JORC (2012) Mineral Resource Estimate of

0.31 Mt @ 2.40 g/t Au for 24,000 ounces

at a 1.0g/t Au lower grade cut-off, with 87% of the Resource in the Measured and Indicated categories.

Intermin also completed a Feasibility Study showing positive economics results and generating a mainden JORC (2012) Ore Reserve of:

0.135Mt at 2.94g/t for 12,700 ounces

Feasibility Study findings indicate a technically strong and financially viable project with the following results:

  • Open pit mine design producing 135,000t at a fully diluted grade of 2.94g/t Au for 12,700 ounces over a 7 month mine life;
  • Third party milling at 94% metallurgical recovery produces 11,938 ounces recovered;
  • Low up-front capital costs of A$0.73m;
  • Attractive C1 Costs of A$1,131/oz and All In Sustaining Costs of A$1,164/oz;
  • Project generates A$5.7m in free cash flow in seven months at A$1,700/oz gold price; and
  • Mining approval activity to create the Company’s second open pit mine are underway.

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.

The next steps include completion of statutory approvals (well advanced), review of development options and negotiation with mining and haulage contractors and third party toll milling operators, and then seek Board approval for mine development.