THE BOURSE WHISPERER: Australian diversified resources company Reed Resources has increased the Gold Reserve inventory at the company’s Meekatharra gold project by 40 per cent.
Reed said the headline increase in total Reserves to 750,800 ounces of gold from 533,700 ounces had been achieved through the company’s continued geological evaluation of its assets as well as conversion of the recently announced large increase in resource at Paddys Flat and Reedy deposits.
Plan view of Paddys Flat deposit locations. Source: Company announcement
The company said it intends maintaining a strategic evaluation of its assets in order to ensure sustainable operations and a long-term production outlook.
“The continued expansion of openpit Reserves confirm the potential of the Meekatharra gold project to be a significant long-life producer of gold,” Reed resources managing director Christopher Reed said in the company’s announcement to the Australian Securities Exchange.
“This fundamental step forward for the company not only expands our future production sources but places the company within sight of defining a million ounce reserve.
“The Bankable Feasibility Study is almost complete and we are advanced in our assessment for future expansions.”
The optimisation of Resources at Paddys Flat (openpit) and Reedy (underground) identified 185,300 of Probable Reserve ounces at a grade of 1.42 grams per tonne gold.
Reed said it has also identified mineralisation beneath the Aladdin pit at Nannine, and at the Maid Marion prospect 20 kilometres north of Meekatharra.
These resources have been optimised classifying an additional 30,100 ounces of Probable Reserves at 1.63 grams per tonne gold.