THE BOURSE WHISPERER: Convergent Minerals (ASX: CVG) has upgraded the gold resource at the company’s 80 per cent-owned Van Uden project.
Gold resources at the company’s two development projects within its Mt Holland Goldfield holding, Van Uden and Blue Vein, now total 603,000 ounces of gold.
The upgrade brings the total resources at Mt Holland to 1.17 million ounces of gold.
The new, combined Measured, Indicated and Inferred JORC resource for Van Uden totals 5.4 million tonnes at 1.38 grams per tonne gold for a total of 238,000 ounces of gold (at a 0.50g/t gold lower cut-off).
The new Van Uden JORC-classified gold mineral resources estimate. Source: Company announcement
Convergent said the upgraded resource represents a 92 per cent increase in ounces to its previous estimate, which was released in 2010, and a 25 per cent increase in the average grade.
“With gold mineralisation commencing from surface and when combined with near-surface gold resources at Blue Vein, this new resource at Van Uden lends support to management’s aim for near-term, open cut mining and heap leach processing,” Convergent Minerals said in its ASX announcement.
“Van Uden and Blue Vein together are being viewed as an early cash flow opportunity for Convergent.
“Scoping Studies are in progress for an open cut mining operation, with processing by heap leach technology.”
As part of the current scoping studies, Convergent has follow-up metallurgical test-work in progress on Van Uden heap leachable material to optimize gold extraction.
The company has designed two open cut mines for Blue Vein north and has mine designs underway for Van Uden.
These designs are being incorporated into the scoping studies, which the company anticipates to be completed by the end of the March quarter 2013.