KalNorth Gold Mines establishes Mt Jewell Reserve

THE DRILL SERGEANT: KalNorth Gold Mines (ASX: KGM) has calculated an initial Probable Reserve of 2.74 million tonnes at 1.36 grams per tonne gold for 119,800 ounces of gold for the company’s Mt Jewell Field.

Metallurgical test work completed by the company has confirmed Mt Jewell to have free milling ore, with good recoveries.

KalNorth considers Mt Jewell to have Resource growth potential as mineralisation remains open in most directions.

The company has further drilling planned for the next quarter to target additional ore.

The addition of the Mt Jewell Reserve boosts KalNorth’s total Probable Reserve by 78 per cent, to: 5.06 million tonnes at 1.7g/t for 272,770 ounces of gold.

The total Indicated and Inferred Resource for KalNorth is 1.2 million ounces of gold.

KalNorth explained the maiden Reserve for Mt Jewell is based on an optimised $1500 per ounce shell and onsite ore processing through a nominal 1 million tonne per annum plant.

The company indicated it was confident enough to have already commenced pit design studies with the expectation of additional resource/reserves leading to advanced pit design and mine planning.

 

Isometric image of proposed Hughes pit including the orebody block model. Source: Company announcement

 

“Mt Jewell is proving to be an outstanding acquisition for KalNorth,” KalNorth Gold Mines managing director John McKinstry said in the company’s announcement to the Australian Securities Exchange.

“With a Total Probable Reserve of over a quarter million ounces now established across the KalNorth Field, we are advancing our plans for another open pit mining operation at Mt Jewell.

“With Reserves now firmed up for our four key gold fields, our focus has turned to aggressively grow the Resource base.

“We believe there is potential for Resource growth across all projects and we intend to tap into that potential in the near-term.”