Saracen to study Whirling Dervish underground potential
THE DRILL SERGEANT: Goldfields producer Saracen Mineral Holdings is set to study high-grade underground mine potential at its Whirling Dervish deposit located adjacent to the Carosue Dam project.
Saracen said it has been encouraged by assay results from a recently completed drilling program at Whirling Dervish.
The company considers the results suggest significant resource potential for the deposit and possible future underground mine development.
The company will be moving additional drilling rigs into action at Whirling Dervish in the September quarter as it tries to delineate extensive additions to the existing resource.
When completed, a study on mining options, including either a cutback to the existing pit combined with an underground mine, or a sole underground operation will commence.
The current Measured, Indicated and Inferred Resource at Whirling Dervish to a depth of 260-290 metres totals:
11.3 million tonnes at 1.4 grams per tonne for 501,000 ounces of gold.
The recent drilling returned one deep intersection at 370 metres, which Saracen said suggests the existence of an exploration target of 20-30 million tonnes of similar grade material of 1.3 grams per tonne to 1.6 grams per tonne.
This would result in an additional 800,000 to 1.5 million ounces, inclusive of a potential high grade zone of 3-4 million tonnes at 4g/t to 4.6g/t for 400,000 to 800,000 ounces.
Saracen said the width, grade tenor and continuity of the high-grade mineralised core, indicates favourably to cost-efficient underground mining.
“The emerging story at Whirling Dervish is one of great potential given its size and close proximity, in the shadow of the mill at Carosue Dam,” Saracen Mineral Holdings executive chairman Guido Staltari said in the company’s announcement to the Australia Securities Exchange.
“Whirling Dervish could make a demonstrable difference to both our reserve profile, which is already significant, and to our production profile, through the blending of higher grade ore.
“We have only just started to test the depth extensions of the Karari-Whirling Dervish trend and how it might on its own fill the Carosue Dam plant for years to come.”
Saracen has one RC drill rig and one diamond core drill rig set to commence drilling in early August.
The company expects the initial results from the program either in the September quarter or early in the December quarter.
It will also be running an underground scoping study to determine initial underground mining parameters.
This will be expanded to a full feasibility study when additional drill results become available and the company has completed an updated resource.