THE BOURSE WHISPERER: Panoramic Resources (ASX:PAN) has announced a combined 74 per cent increase in the Resources at Howards and Heron South, part of the company’s 100 per cent-owned Gidgee gold project, located near Wiluna in Western Australia.
The total Resources at Gidgee now measure 11.8 million tonnes at 3.07 grams per tonne gold for 1,160,000 ounces of gold.
“The Resource upgrade at Howards and Heron South demonstrate the potential for further Resource upgrades and exploration success at Gidgee,” Panoramic Resources said in its ASX announcement.
“These resources will now be included in the updated Gidgee gold project Scoping Study, which is currently underway and due for completion before the end of 2012.”
Drilling results from Howards. Source: Company announcement
The updated Resource at Howards is now 3.5 million tonnes at 1.61g/t gold for 182,500 ounces of gold.
This represents a 100 per cent increase over the deposit’s previous estimate.
The gold grade has also increased by approximately five per cent from 1.54g/t to 1.61g/t.
“The recently completed drilling program at Howards demonstrates a mineralised system that remains open at depth and along strike,” Panoramic said.
“The Howards Resource has not previously been mined and has the potential to be an early source of ore in any redevelopment at Gidgee.”
The upgraded Resource at Heron South is now 1.1 million tonnes at 2.20g/t gold for 80,300 ounces of gold.
This is a 34 per cent increase over the previous estimate.
“Resource definition drilling has confirmed a continuous, well defined mineralised zone beneath the existing open pit,” Panoramic said.
Panoramic indicated a recently-announced Scoping Study for the Gidgee project will now be expanded to include the Resource upgrades at Howards and Heron South.
The company said it considered the upgraded resources add to the prospects of the redevelopment and commencement of operations at Gidgee.
“Assuming that the updated Gidgee Scoping Study is completed before the end of 2012, Panoramic plans to commence a detailed Feasibility Study in early 2013,” the company said.
“Subject to positive economic results, financing and necessary statutory approvals, the target is to be in gold production at Gidgee in mid-2014.”