A MAIDEN 107,000 ounce gold resource has been estimated for Adelaide Resources’ Barns Gold Project on South Australia’s Eyre Peninsula. The deposit is open to the south and down dip, and there is a strong chance of increasing the resource while five nearby prospects also show strong potential.
The resource totals 2.11 million tonnes @ 1.6 grams/tonne (g/t) gold at a 0.5 g/t cut-off. It is classified into 380,000 tonnes of indicated resource and 1.73 million tonnes of inferred resource. The estimate was jointly completed by independent consultant Mining Plus and Adelaide Resources.
Barns is 23km north of the town of Wudinna. It is owned by a subsidiary of Adelaide Resources, with Newcrest Mining retaining a 1.5% NSR royalty.
Barns was discovered in 2000 when the final hole of a 50-hole RAB drilling program completed to test a large calcrete gold geochemical anomaly recorded intersections of 8 metres @ 3.0 g/t gold and 7 metres @ 1.8 g/t gold. Subsequent programs of reverse circulation, diamond and RAB/aircore drilling outlined a coherent body of gold mineralisation.
In the early 2000s gold traded in a range of A$450 to A$600 per ounce and economic assessments indicated Barns was sub-economic. It is now trading at A$1700 to A$1800, prompting a re-evaluation of the deposit.
In early 2016 Adelaide completed a detailed assessment of the deposit data resulting in development of a 3-D mineralisation model.
An important consideration in progressing Barns towards development will be determining the metallurgical behaviour and gold recoveries under a number of potential treatment scenarios. The simple mineralogy of the gold lodes and the commonly observed presence of native gold are positive metallurgical indicators.
Earlier metallurgical test work is limited to the testing of one composited sample from Barns and two from Baggy Green prospect. Each achieved favourable overall gold recoveries. The design of a comprehensive metallurgical test work program to better assess gold recoveries is under way.
The company will continue to be guided by an iterative economic assessment of the Barns deposit. The estimation and release of the maiden resource will allow the company to announce the results of such future economic scoping studies.
The company now plans to complete test work to establish gold recoveries, evaluate development options and conduct exploration to increase the resource inventory.