THE BOURSE WHISPERER: Kimberley Metals has finalised a Resource Definition Program at the company’s Mineral Hill project.
The company has determined a first Resource estimate of approximately 2.0 million tonnes for the Southern Ore Zone (SOZ), lifting Mineral Hill’s overall current JORC-compliant Resources to 5.2 million tonnes containing 222,000 ounces of gold, 61,000 tonnes of copper and 6 million ounces of silver.
The latest estimate for SOZ follows on from the Resource estimate for the Eastern SOZ lodes (ESOZ) and Parkers Hill Resource upgrade the company had announced in September.
The company said that in terms of JORC-compliant estimate of contained metal, this resource upgrade represents:
– A 96 per cent increase in estimated contained copper, a 190 per cent increase in estimated contained gold and a 39 per cent increase in estimated contained silver over Kimberley’s resource estimate that it released in July; and
– A 38 per cent uplift in estimated contained copper, a 77 per cent increase in estimated contained gold and a 21 per cent increase in estimated contained silver from the company’s most recent resource upgrade issued in September.
Summary increases in JORC-compliant Resources at Mineral Hill since July 2011. Source: Company release
“The Southern Ore Zone Resource adds significant upside to the Mineral Hill mining operations and importantly supports both an extension to the mine life and the ability to increase gold production,” Kimberley Metals executive chairman Jim Wall said in the company’s announcement to the Australian Securities Exchange.
According to Kimberley Metals the new 1.96 million tonne Resource Estimate for SOZ includes a high grade gold component of 400,000 tonnes at 4.4 grams per tonne gold and 0.8 per cent copper, a broader copper-gold resource and a separate lead-zinc resource.
Approximately 72 per cent of these Resources have been classified in the Measured and Indicated categories.
Kimberley has commenced dewatering the decline to access the SOZ drive.
A new production bore is being commissioned to increase pumping rates, which will allow the SOZ and ESOZ deposits to be reached by late 2012.
The company said it expects mining operations to commence during early 2013 following rehabilitation of the access.
Kimberley said it is confident drilling of its high priority exploration targets over the next year at Mineral Hill will further upgrade these Resources and extend the current production profile.
This would enable an expanded production profile of 400,000 tonnes of ore per annum for at least ten years.