THE BOURSE WHISPERER: Overland Resources has finalised the re-estimation of the JORC Code compliant mineral resource for the company’s Yukon base metal project in Canada.
The company completed an exploration drilling program during 2011, which it said has extended the strike length of the known mineralisation at the Darcy and Andrew zinc deposits by 150 metres and 100 metres respectively.
The JORC Code compliant Indicated and Inferred Resource for the Darcy zinc deposit has been increased by 60 per cent to:
– 5.6 million tonnes at 4.7 per cent zinc.
The drilling conducted by Overland at the Andrew deposit extended the eastern end of the known mineralisation whilst closing off the western end of the deposit.
The updated Measured, Indicated and Inferred JORC Code compliant mineral resource for the Andrew zinc deposit has been increased by 7 per cent to:
– 7.8 Mt at 5.8 per cent zinc and 1.4 per cent lead.
The latest upgraded mineral resource estimates increase the total JORC Code compliant Measured, Indicated and Inferred mineral resource at the Yukon base metal project by 24.5 per cent to:
– 13.7 Mt at 5.3 per cent zinc and 0.8 per cent lead, or 13.7 Mt at 6.2 per cent zinc equivalent.
JORC Code compliant resource estimate for the Yukon base metal project (2% zinc cut off). Source: Company announcement
Overland said mineralisation at all three deposits at Yukon, including the Darin deposit, remains open at depth.
The company said it considers potential exists to expand the resource base further with deeper drilling.
It anticipates this drilling would be undertaken once the mining operation is in production and underground expansion was being considered.
“The extension of the shallow mineralisation at the Darcy zinc deposit along strike and the consequent 60 per cent increase in resource tonnes presents an opportunity to increase both the length and depth of the open pit development at this deposit,” Overland Resources said in its ASX announcement.
“The company has commenced a review of the open pit mine design and mining schedule for the Darcy deposit to optimise the production plan based upon the new resource re-estimation.
“Upon the completion of a new mine plan for the Darcy zinc deposit a production schedule will be developed for the combined mining operation of the Darcy and Andrew zinc deposits to optimise both production and capital utilisation.
“This new information will be factored into the economic parameters for the Project and mine permit submission.”