THE BOURSE WHISPERER: Millennium Minerals has reported an update of the gold Mineral Resource and Ore Reserve Inventories for the company’s Nullagine gold project in in the East Pilbara District of Western Australia.
The global Mineral Resource estimate for the Nullagine project now stands at 34.68 million tonnes grading at 1.19 grams per tonne gold Au for 1,328,500 contained gold ounces.
The Ore Reserve for the project is now 16.38 Mt at 1.4 g/t gold containing 741,000 ounces, using a cut-off grade of 0.5 g/t gold, and $1,500 per ounce gold price.
The upgrade covers Mineral Resource and Ore Reserves estimates for six of the company’s gold deposits located within the Nullagine project.
Nullagine gold deposits Location Plan. Source: Company announcement
Millennium conducted drilling on the six gold deposits – Golden Eagle, Shearers, Otways, All Nations, Bartons and Little Wonder – during 2011 to test for extensions to mineralisation outside the margins of its current proposed pit designs.
“We are delighted to be able to deliver such a substantial increase in Ore Reserves at our project in the run up to the start of gold production next year,” Millennium Minerals chief executive officer Brian Rear said in the company’s announcement to the Australian Securities Exchange.
“Our construction program is now well advanced with engineering, earth works, civils, tank refurbishment and village construction on schedule and on budget.
“We are on track to commence commercial operations by the fourth quarter of 2012.
“We are confident in our ability to further increase the Mineral Resource inventory at all of the deposits that make up the project and we are considering a very substantial drilling program in 2012.”
The increase in the Mineral Resources at Nullagine has resulted from a further 81,000 ounces of gold being added from the Golden Eagle, Shearers, Otways, All Nations, Bartons and Little Wonder deposits.
The new numbers represent a 57 per cent increase in Ore Reserve tonnes equating to 5,928,700 tonnes and a 31 per cent increase in Ore Reserve ounces equating to 174,000 ounces of gold.
Millennium said the new Ore Reserve will be used to prepare an updated mining plan in the coming weeks.