Teal – Au

The project is located on granted Mining Leases M26/499, M26/621, M26/346, M26/549 and L26/261 ~11km northwest of Kalgoorlie in Western Australia.  The Teal camp comprises three main deposits, namely Teal, Jacques Find and Peyes Farm, in addition to new discoveries in 2018.

Open pit mining commenced in late 2016 at the Teal deposit. Ore was processed 22km north at the Paddington mill which is owned and operated by Norton Gold Fields Limited.

Mining of an eastern cutback (Teal Stage 2) commenced in September 2017, with treatment occurring at Golden Mile Milling’s Lakewood plant.  Both stages were completed in March 2018 with final gold production occurring in the June 2018 quarter.  The mine performed strongly against the feasibility study metrics as shown in the table below, with tonnes, grade, recovery and ounces up, resulting in a large increase in revenue.

The geology at the Teal project area is dominated by Black Flag sediments (felsic volcanics and volcanoclastics) with lesser amounts of porphyry and intermediate volcanics. Fresh rock gold is typically associated with quartz and sulphides and faulting has displaced and pinched out some of the mineralisation. Primary mineralisation at depth exhibits semi-refractory properties and optimal recoveries are achieved through ultra-fine grinding, pressure oxidation or roasting. The shallow oxide supergene mineralisation is similar to the Teal gold mine where recoveries above 93% where achieved

As part of the large $4m 55,000m drilling program carried out in 2018, 182 RC holes for 23,545m was completed at depths of 60–270m (average 130m) with the majority of the drilling focussed on resource growth at Teal, Jacques Find and Peyes Farm.

The independent JORC (2012) Mineral Resource for the Teal Project area following this extensive program, and after depletion from mining Teal Stages 1 and 2, stands at:

4.25Mt @ 2.11g/t Au for 289,000 ounces

at a 1.0g/t Au lower grade cut-off with over 85% in the Indicated Resource Category with mineralisation open in all directions.

Location Plan Teal-Jacques-Yolande drilling showing recent and previous results and cross section locations.

Significant shallow downhole RC intercepts included:

10m @ 6.70 g/t Au from 60m (JFRC18048)

8m @ 5.70g/t Au from 64m (JFRC18026)

8m @ 5.28g/t Au from 64m (JFRC18095)

6m @ 6.69g/t Au from 91m (JFRC18042)

3m @ 10.28g/t Au from 102m (JFRC18034)

13m @ 2.78g/t Au from 90m and 11m @ 2.77g/t Au from 73m (JFRC18049)

6m @ 4.72g/t Au from 54m and 6m @ 4.34g/t Au from 42m (JFRC18038)

37m @ 2.16g/t Au from 90m and 9m @ 4.45g/t Au from 118m (JFRC18010)

7m @ 4.47 g/t Au from 34m and 12m @ 2.33 g/t Au from 105m (JFRC18129)

Significant deeper downhole RC intercepts included:

8m @ 10.31g/t Au from 123m (JFRC18039)

8m @ 5.88g/t Au from 124m (JFRC18136)

5m @ 4.49g/t Au from 117m and 7m @ 3.46g/t Au from 90m (JFRC18112)

The Teal and Peyes Farm prospects occurs within a package of predominantly felsic volcanic rocks, 700m west of the Abattoir Shear ultramafic contact. Mineralisation at Peyes Farm outcrops and a series of shallow workings aligned in a north-south orientation occur over a strike length of 300m and targeted quartz-arsenopyrite veining.These workings are thought to have been mined as far back as 1901, with production records only available for 1919-20 when 34.54 tonnes of ore was extracted at a grade of 10.8 g/t Au.

Jacques Find was discovered by Intermin with deeper RC drilling beneath shallow low grade hits in late 2016 and lies 600m south and strikes parallel to the Teal deposit.  The stratigraphy at Jacques Find is dominated by a steep dipping, north to north northwest striking sequence of felsic tuffs, porphyries and intermediate volcanics.

Cross section of Jacques Find and Peyes Farm

New, fresh rock mineralisation discovered 100m east of the Teal pit at “Teal East”. Two holes returned encouraging results including:

9m @ 3.33 g/t Au from 60m (TRC18001)

12m @ 3.43 g/t Au from 96m (TRC18020)

New, shallow gold mineralisation discovered on the eastern edge of Teal pit with significant oxide and transitional results including:

14m @ 3.02 g/t Au from 41 (TRC18009)

8m @ 1.30 g/t Au from 42m (TRC18018)

Cross section of Teal West and Teal East

The Teal camp mineralisation is hosted within a north northwest striking sequence of felsic tuffs, porphyries and intermediate volcanics and has been defined over a strike length over 2km and in multiple subparallel steep dipping structures. All mineralisation is open and is indicative of a much larger mineralised system at depth possibly in the 2-5Moz range.

Given the successful drilling programs to date, further resource extension and new discovery drilling in the Teal Project area is planned to commence in 2019. The drilling will focus on:

  • Building additional resources at Teal West and Teal East
  • Following up encouraging auger results proximal to the Jacques Find and Peyes South areas
  • Diamond drilling beneath deep high grade shoots at Jacques Find and Teal

Mining studies have commenced on the Jacques Find, Peyes Farm and further stages of the Teal project focussed on open pit development for extraction of the oxide and transitional ore as part of the mining production pipeline. In addition, metallurgical test work will continue to determine optimal processing pathways for the primary mineralisation with further discussions to be held with suitable processing plant owners in close proximity.