THE BOURSE WHISPERER: ABM Resources has received the results of the Old Pirate Stage 1 Open Pit Scoping Study recently conducted on the company’s Old Pirate gold deposit located in the Northern Territory.
The Old Pirate deposit is situated on the same project as the company’s multi-million ounce resource at the Buccaneer porphyry gold deposit.
The study has modelled the Stage 1 Old Pirate open pit to contain 832,000 tonnes at 11.5 grams per tonne gold for 308,000 ounces of gold and is based on both Inferred and Indicated Resources Estimations the company announced in April.
Oblique 3D view showing resource model and open pit design. Source: Company announcement
The study found the presence of high-grade coarse free gold at Old Pirate allows for construction of a simple Gravity Processing Plant with savings on capital expenditure and processing compared to conventional cyanide leach processing.
Work is also on-going under a Memorandum of Understanding with Tanami Gold to consider processing Old Pirate material at the Coyote gold mine located 45 kilometres from Old Pirate.
“We are very pleased with the outcomes of the Entech Scoping Study for Old Pirate,” ABM Resources managing director Darren Holden said in the company’s announcement to the Australian Securities Exchange.
“The study presents the potential for a low-cost and highly profitable open pit mining operation.
“Considering that the Scoping Study neither takes into account possible underground development nor is optimised to include known gold-bearing veins outside the resource, we are considering this as a first base case with upside yet to be factored in.
“ABM is currently exploring another three kilometres of prospective strike length of sedimentary horizons at Old Pirate targeting gold bearing vein material.”
ABM pointed out that the Old Pirate Deposit is located on an Exploration Licence and consists of both Inferred and Indicated Resources.
The company is currently trenching extensional veins at Old Pirate and a drilling program will commence shortly.
ABM said that it still needs to conduct further testing, resource definition, design, feasibility studies and environmental work as well as obtaining regulatory approvals for a Mineral Lease before mining can commence. This work is on-going.