THE BOURSE WHISPERER: Carrick Gold has announced a Resource upgrade at its Kurnalpi project.
Kurnalpi is one of three projects which make up the company’s LKK project, situated less than an hour’s drive from Kalgoorlie.
Carrick said it is on track to commence production in late 2012, with Kurnalpi being the first of two open pit mines it will bring into production.
In December 2011, Carrick completed drilling at Kurnalpi largely focussed on the project’s main feature; the Brilliant orebody.
Isometric view of the block model showing the Kurnalpi satellite
orebodies in relation to the Brilliant orebody. Source: Company
The drilling was designed to test the strike and depth extensions of defined mineralisation.
The data collected resulted in a significant increase in the Resource on the Brilliant orebody while other work conducted in conjunction with the drilling reassessed the density of different rock types at other orebodies at Kurnalpi.
The net result of all this activity has been an increase of 21 per cent to the overall Kurnalpi Resource taking it to:
– 6.17 million tonnes at 1.2 grams per tonne gold for 228,800 ounces of gold.
Carrick said Lindsay’s, the second of its open pit mines at the LKK project, is also on track to commence production, as soon as practical after Kurnalpi.
Including the recently announced Probable Reserve at Lindsay’s,
Carrick’s total Probable Reserve is:
– 1.75 million tonnes at 1.8 grams per tonne gold for 102,927 ounces of gold.
“The relatively quick delivery of an additional 41,700 ounces on the Brilliant orebody, at a cost of around $23 per ounce shows that in time the Kurnalpi project has the potential to grow appreciably,” arrick Gold managing director John McKinstry sadid in the company’s announcement to the Australian Securities Exchange.
“Subsequent to increasing the Resource we would expect to increase the ounces in the Reserve category, and that will be known in early March.
“With every round of drilling our confidence in the understanding of Kurnalpi’s mineralisation grows.
“Our focus to date has been on the ore that can be extracted quickly through open cut mining, to establish early cashflow, but we are eager to apply that learning to the nearby exploration prospects that may add further to the project’s economic potential.”