THE BOURSE WHISPERER: Chesser Resources (ASX: CHZ) is swaggering with confidence following the release of a maiden Indicated Mineral Resource.
Chesser said the new Indicated resource was part of an increase to the total mineral resource for the company’s Kestanelik gold project in north western Turkey.
The maiden Indicated Mineral Resource has come in at 1.6 million tonnes at 3.53 grams per tonne gold and 2.6 grams per tonne silver totalling 183,000 ounces of gold.
The new JORC Mineral Resource update has resulted in a 52 per cent increase in the Total Mineral Resource at Kestanelik to 703,000 ounces of gold, comprising 10.2 million tonnes at 2.15g/t gold and 1.9g/t silver.
Chesser said 65 per cent of Total Mineral Resource lies within 50 metres of the surface at a grade of 2.54g/t gold.
The company has also updated a previous Scoping Study for Kestanelik based on the updated mineral resource estimate, which has calculated annual throughput of 844,000 tonnes per annum producing 63,000 ounces of gold per annum over an eight year mine life.
The Study has determined the project will need total construction capital of US$88 million including 30 per cent contingency with average Life of Mine (LOM) C1 cash costs of US$415 per ounce and average LOM all in sustaining costs of US$546 per ounce.
Chesser has now commenced a Prefeasibility study.
“We are extremely pleased with a significant increase of over 50 per cent in gold ounces from the previous mineral resource estimate with a high percentage of the mineral resource located within 50 metres of the surface,” Chesser Resources managing director Dr Rick Valenta said in the company’s announcement to the Australian Securities Exchange.
“The additional drilling has increased our confidence in the presence of the near-surface high-grade gold mineralisation and combined with excellent metallurgical results, these positives will form the backbone of a mining and milling operation at Kestanelik.
“In addition, we have numerous areas both within and outside the current mineral resource, which remain open for further resource expansion.
“The Scoping Study Update benefits from the presence of multiple high-grade zones, which should be accessible at a low strip ratio early in the life of the mining operation.
“A prefeasibility study has commenced based on the favourable outcomes of the Scoping Study Update and will consider a number of alternatives for the development of Kestanelik, including staged development aimed at minimising upfront capital expenditure.”