Kalgoorlie upgrades Bullant

THE DRILL SERGEANT: Kalgoorlie Mining Company has release an upgraded resource estimate of 446,900 tonnes at 4.68 grams per tonne containing 67,300 ounces of gold for the East Lode resource at its Bullant gold mine located 70 kilometres north west of Kalgoorlie, Western Australia.

The updated Resource Estimate is a 440 per cent increase over the previous East Lode resource developed by Barrick and is based on exploration holes the company has drilled into the East Lode since it restarted the operations earlier this year after Barrick closed down the mine in December 2009.

These additional resources in the East Lode take the total gold resource ounces at the Bullant gold project to 302,200 ounces of gold representing a 25 per cent increase in less than 10 months.

The estimation of the East Lode utilised the information gained from a total of 30 newly drilled holes.

KMC said that the results combined with the validation of historic drill holes that were previously drilled from both surface and underground to demonstrate the East Lode to be a continuous mineralised structure.

“The classification of the ore body is based on the confidence and the nature of the ore body as seen during ore drive development and the density of drill holes in a given region,” Kalgoorlie Mining Company said in its announcement to the ASX.

“The entire southern region has been incorporated into one complete modelled structure.

“This is perhaps where the biggest change in the size and shape of the model has occurred, with Barrick electing to place an indicated classification around the crown pillar area, which has now been depleted.”

KMC has converted the area surrounding the new development to Measured, and by using Stage 1 and 2 drilling has extend the Indicated portion of the model 180m below the current level of development.

The company said its confidence in the Inferred material was based on shallow drill intercepts, which it has been tied into the surface drilling that was carried out prior to 2011.

“The Inferred material provides a number of exploration targets to be followed up by future exploration programs,” the company said.

“The resource update not only provides an extension to the East Lode, but also serves as an active Grade Control model in preparation for stoping.

The next stage of drilling, Stage 3 is currently being processed.

“When drill results become available they will be released to the market, along with subsequent updates of the resource.”