Bligh Resources upgrades Bundarra Resource estimate

THE DRILL SERGEANT: Bligh Resources (ASX: BGH) has had a Mineral Resource estimate calculated at the Bundarra gold project, located in the Leonora region of Western Australia.

Bligh owns 42.9 per cent of SR Mining, which owns the Bundarra project.

The total Bundarra gold project Mineral Resource has increased by 54 per cent from 318,000 ounces estimated in November 2012 to 489,000 ounces of gold.

The new Mineral Resources comprise 3,972,000 tonnes at 2.2grams per tonne gold containing 276,000 ounces of gold in the Measured and Indicated categories.

There is also a further 3,510,000 tonnes at 1.9g/t gold containing 213,000 ounces of gold in the Inferred category.

The company explained the Mineral Resource estimate has been updated from previous estimates for the Wonder North and Celtic deposits, and incorporates new estimates for the Wonder West and Celtic South deposits that had not been previously reported by Bligh.

Bligh has taken confidence from the upgrade saying it provides the company with additional exploration upside potential existing at both its Bundarra and Leonora projects.

 

Bundarra project Location. Source: Company announcement

 

“This significantly increased resource estimate, which was achieved at minimal cost provides further confirmation of the development potential at Bundarra, and bolsters the mine life potential and economics of the project,” Bligh Resources chief executive officer Robert Benussi said in the company’s announcement to the Australian Securities Exchange.

“After the encouraging results from the scoping study completed in May 2013, Bligh is well positioned to advance its objective of becoming a gold producer at Bundarra.

“As mentioned previously, Bligh’s mining schedule focuses on maximising cash flow, with grade controlled ore at the base of the Celtic pit providing an immediate cash injection once production commences.

“Bligh and project partner SR Mining are encouraged by this substantial milestone, which adds significant value to the Bundarra gold project through the detailed compilation of historical data and will continue to work towards the implementation of a structured development strategy.

The company will now focus on progressing a maiden Ore Reserve statement and a revised Scoping Study based on the updated resource models.

“The existing Mineral Resources at Bundarra offer Bligh a near term gold production opportunity in the Eastern Goldfields of Western Australia.”