Mining study confirms Excelsior potential

THE DRILL SERGEANT: Excelsior Gold has completed a preliminary conceptual mining study on the Excelsior resource in the central portion of its 100 per cent owned Kalgoorlie North project.

The results of the study have supported the company’s belief the deposit has the potential for large open pit development.

Additional assay results received by the company from a recently completed reverse circulation drilling program at Excelsior also defined broad intervals of gold mineralisation and higher grade zones.

Excelsior Gold has interpreted this to demonstrate the deposit’s potential to extend the conceptual pit design deeper beyond its current 175 metre vertical depth.

The conceptual study was based on the current Excelsior resource model which contains Indicated and Inferred resources of 5.3 million tonnes at 1.47 grams per tonne gold for 250,900 ounces (at 0.6g/t lower cut).

Recently received assay results from a reverse circulation drilling program undertaken at the Excelsior deposit have demonstrated broad zones of gold mineralisation and higher grade intersections.

The company expects these results will enable it to extend the current resource model at depth to the north.

New intersections at Excelsior include:

–    32 metres at 1.10 grams per tonne gold from 120 metres, including 8 metres at 1.42 grams per tonne gold from 123 metres and 14 metres at 1.42 grams per tonne gold from 123 metres; and

– 12m at 7.09g/t gold from 59m, including 3m at 20.9g/t gold from 62m and 22m at 1.15g/t gold from 97m.

The drilling consisted of 15 reverse circulation holes totalling 2,711m over 750m of strike at Excelsior.

The company has received assays results for nine of the 15 holes to date, with further sample batches yet to be processed.
“These drill results are anticipated to significantly improve the resource grades estimated in these locations within the current resource model as well as improving the resource confidence and/or extending the current resource,” Excelsior Gold said in its announcement to the ASX.

“This extension of the model and increase in block grade will potentially drive the Whittle optimisation deeper, particularly in the north.

“The intercepts of 12 metres at 7.09 grams per tonne and 12 metres at 1.62 grams per tonnes are very significant as they intersect the current block model where block grades are less than 1.2 grams per tonne gold near the northern end of the current conceptual pit design.

“Pushing the optimisation deeper in the north may well have an impact on the overall depth of the conceptual pit extending it deeper than its current 175 metre vertical depth.”

Once it has received all assay results Excelsior Gold intends conducting new resource modelling to facilitate more detailed mine analysis.

The company said it believes the results of the conceptual mine design study at Excelsior are sufficiently encouraging to warrant an extensive infill and extensional drilling campaign.

This is expected to commence in late October subject to appropriate approvals.

Drilling will also be conducted at several of the satellite resources such as Jackorite, Castlereagh and Lochinvar in order to define possible reserves.

Further engineering and metallurgical testwork is planned in preparation for mine pre-feasibility studies on the Excelsior and surrounding satellite deposits.