THE BOURSE WHISPERER: Alacer Gold has updated the Mineral Resource and Reserve estimates for its Higginsville gold operations in Western Australia.
The company has increased the project’s Mineral Reserve estimate by 164,000 ounces (net of mining depletion over 18 months) to 7.9 million tonnes at 3.5 grams per tonne gold, containing 875,000 ounces.
Source: Company announcement
“This updated Higginsville Reserve is the culmination of extensive drilling and other work since July 2010, Alacer Gold president and chief executive officer Edward Dowling said in the company’s announcement to the Australian Securities Exchange.
“The net increase of 164,000 ounces is quite significant considering that the Higginsville gold operations produced more than 230,000 ounces of gold during the 18 months to December 2011.”
Alacer said the increased reserves were mainly due to down‐plunge extensions of the Trident ore body, which stood at around 500,000 ounces when the company commenced mining it four years ago.
More than 500,000 ounces have now been produced from Trident, and the Trident reserve remains more than 500,000 ounces.
“It is important to note that the Measured and Indicated Resources for Trident and Chalice total a combined 5.7 million tonnes at 4.9 grams per tonne gold, containing 895,000 ounces,” Dolwing continued.
“Further drilling should progressively convert more resources to reserves as well as continuing to extend both resources.
These efforts take time, but we are excited about the likelihood of additional high‐margin ores as demonstrated by the recent high‐grade discovery at Corona within the Higginsville Line of Lode.”
The company said it expects an increasing proportion of Higginsville feed will be high‐grade ore accessed from underground mines following the ramp-up of Chalice ore production later this year.
Alacer said this will take Higginsville a long way towards its target of processing 1.5 million tonnes per annum at a head grade of 4.5g/t gold, producing approximately 200,000 ounces per annum.