Lionsgold Limited expects to make a decision by the end of the June quarter on whether to construct an open pit mine at the Jonnagiri Gold Project in India. The decision will follow the release of an economic feasibility study, which Lionsgold said was nearing completion.
|Drilling at the Jonnagiri Gold Project in the Kurnool region of India’s Andhra Pradesh state.|
The Jonnagiri lease is held by Geomysore Services India Pvt Ltd, of which Lionsgold owns 20.5%. Geomysore has been granted a 30-year mining lease to mine 365,000 ounces of gold annually.
UK-based Lionsgold, which was formerly known as Kolar Gold, has been rebranded and refinanced over the last few months. It also has an interest in Finnish explorer Kalevala Gold and a 50/50 Joint Venture with TRAC Technology to set up a retail gold platform in India.
Lionsgold’s chief executive Cameron Parry said, “We now have three complementary gold-focused divisions all of which have important milestones pending.
“Our India partners, Geomysore, are close to the conclusion of the economic feasibility study which takes us to the ‘decision to mine’ stage around the end of May. Lionsgold has also commissioned a valuation report on the entirety of Geomysore’s licences and licence applications in India.
“In addition, we are on the cusp of going live with our newly branded physical gold and silver online holding and trading platform initially targeting the India market.”
Lionsgold recent announced a substantial upgrade in resource quality at Jonnagiri. There are now 214,000 ounces in the indicated category and 147,000 ounces in the inferred category at the East and West blocks. The previous resource estimate had 103,000 indicated ounces and 248,000 inferred ounces. There was a marginal increase in the total resource to 361,000 ounces.
Cameron Parry said, “The results underpin the work and data gathered via the current feasibility study and materially improve the viability of a producing gold mine.
“Additionally, the early test drilling results from the new South Block at Jonnagiri are particularly encouraging and plans are being made for further drilling on the South Block to establish an additional open pittable gold resource.”
Best of the shallow drill results included 8 metres from surface @ 2.67 g/t gold and 5 metres from 6 metres @ 4.24 g/t.
The partners plan to undertake a 4000 metre drill program to further uncover the South Block’s potential.