THE BOURSE WHISPERER: Doray Minerals has announced a maiden high-grade mining reserve for the company’s 80 per cent-owned Andy Well gold project, located 45kilometres north of Meekatharra, in the Murchison region of Western Australia.
Doray is making progressing a Bankable Feasibility Study at Andy Well, with the aim of commencing open pit mining in the second half of 2012 and first gold production in mid-2013.
“This maiden high grade open pit and underground mining reserve is another important milestone in the progression of the Andy Well project towards development and comes just over two years after the discovery drill hole and just over a year since the maiden Wilber Lode resource,” Doray Minerals managing director Allan Kelly said in the company’s announcement to the Australian Securities Exchange.
“With an average open pit grade, across two open pits, of almost 15 grams per tonne and an average underground mined grade of just under 13 grams per tonne, which takes into account all dilution related to minimum mining widths, this project represents a fantastic near term production opportunity for the company.
“We also believe there is substantial near term upside at Andy Well with the recent results from the nearby Judy Zone confirming our long held belief that there exists the potential for multiple deposits within the project.”
Long Section of Wilber Lode showing maiden mining reserve and proposed
open pit and underground mine infrastructure. Source: Company
The maiden JORC-compliant Mining Reserve for Andy Well is based on the Wilber Lode Resource Model the company announced in March 2012, and has been calculated utilising mining and processing assumptions developed as part of the Bankable Feasibility Study currently nearing completion.
The combined high grade open pit and underground mining reserve for Andy Well currently stands at:
– 570,000 tonnes at 12.8 grams per tonne gold for 235,000 contained ounces.
A recently completed scoping study for the project indicated maiden Mining Reserve to be:
– (stage one) open pit – 32,000 tonnes at 14.9g/t gold for 15,000 contained ounces; and
– underground – 507,000 tonnes at 12.6g/t gold for 206,000 contained ounces.