THE DRILL SERGEANT: Alliance Resources (ASX: AGS) announced a Maiden Mineral Resource Estimate for the Weednanna gold deposit, part of the Wilcherry Project Joint Venture between Alliance (75.01%) and Tyranna Resources (ASX: TYX) (24.99%) in South Australia.
Alliance Resources declared the maiden Mineral Resource Estimate of 1.097 million tonnes at 5.1 grams per tonne gold for 181,000 ounces gold confirms Weednanna as a quality gold deposit with outstanding economic potential.
The company explained that the reported Mineral Resource is that proportion of gold contained within $2,000 pit shells of: greater than 0.5g/t gold and greater than 2g/t gold underground potential.
The company signalled potential to increase the size of the Mineral Resource with further drilling as all 13 modelled gold shoots are open at in at least one direction.
Eighty-three per cent of the Mineral Resource occurs within 120 metres of surface (1,253 ounces per vertical metre) and is readily accessible using open pit or underground mining techniques.
Alliance said potential exists for new gold shoots not included in the current Mineral Resource.
The maiden mineral resource for Weednanna has been delivered 18 months after first drilling by the JV with a low discovery cost equivalent to $7.90 per ounce gold.
“The delivery of a maiden Mineral Resource is a significant milestone for the company and confirms Weednanna as a quality gold deposit with outstanding economic potential,” Alliance Resources managing director Steve Johnston said in the company’s announcement to the Australian Securities Exchange.
“This is the first step towards establishing the Wilcherry project area as an emerging gold-producing district in South Australia.”