THE BOURSE WHISPERER: Carrick Gold (ASX:CRK) has calculated an upgrade to the Resource at the company’s Mt Jewell Field project.
Mt Jewell Field is one of four projects which make up the company’s KalNorth Gold Field, situated less than one hour’s drive from Kalgoorlie.
Carrick commenced drilling at the Hughes and Tregurtha deposits at the Mt Jewell Field in July 2012 to raise the category of the resource and enable the estimation of mining reserves.
Mt Jewell Resources Sept-2012 reported at 0.5g/t gold cut-off. Source: Company announcement
This has resulted in a 27 per cent increase to the Indicated and Inferred Mt Jewell Resource, based on a 0.5g/t cut off, to 8.62 million tonnes at 1.0 grams per tonne gold for 275,600 ounces of gold.
Carrick’s total Indicated and Inferred Resources now exceed 1.1 million ounces of gold.
The initial Probable Reserve comprises the pits at Kurnalpi and Lindsay’s of 1.75 million tonnes at 1.8g/t gold for 102,927 ounces of gold.
Of the total Mt Jewell Resource, 72 per cent is now catalogued in the Indicated category.
On this basis, the company indicated it expects to be able to deliver an initial mining Reserve in October 2012.
“The Resource growth is pleasing, while the increased confidence level of the Resource to the Indicated category enables us to complete pit designs,” Carrick Gold managing director John McKinstry said in the company’s announcement to the Australian Securities Exchange.
“We are delighted that the results have delivered considerably more ore within the mineralised envelope.
“Both orebodies have demonstrated considerable opportunity for additional Resource growth.
“The pit designs, when completed in October, are expected to deliver initial Mining Reserves, making Mt Jewell the fourth of Carrick’s planned operations.”
Carrick explained the new modelling indicates the presence of considerably more mineralised material within the proposed pit limits, particularly at Hughes.
The company said this will favourably influence its plans for the mining and processing of these deposits.
A mine at Mt Jewell is expected to be the fourth of Carrick’s open pit mines in the KalNorth Gold Field.