WHITE Cliff Minerals has engaged consultants to complete a new resource estimate for the Aucu Gold Project in the Kyrgyz Republic. The new estimate is expected to add to the existing resource of 1.2 million tonnes @ 4.2 g/t for 156,000 ounces of gold.
|Setting up a drill rig on a prospect at White Cliff Minerals’ Aucu Gold Project.|
The resource, which is amenable to open pit mining, starts at surface and has excellent metallurgical characteristics with 88.6% of gold reporting to the gravity concentrate and total recoverable gold of 99% via cyanide extraction.
The new estimate being prepared by Optiro will incorporate high grade gold mineralisation identified at the Quartz Zone in 2016. Mineralisation starts at surface, extends over 300 metres long and down to 120 metres depth. The zone contains substantial visible gold, both in outcrop at surface and in drill holes at depth with mineralisation still open in both directions and at depth.
The company expects further drilling in 2017 will substantially expand the zone.
White Cliff has submitted all mineralised intervals from its 2016 drilling program to Bureau Veritas laboratory in Perth for gold, copper and base metal assays. This analysis forms part of the standard quality assurance protocols associated with conducting JORC-compliant resource estimations.
In addition, the company has received bulk density results from drill samples that confirm the density used in the initial resource estimate. These results are essential to enable inferred resources to be upgraded to the indicated category.
The company is also conducting substantial test work to better outline potential processing options. Provided this produces the high gravity gold recoveries encountered in previous studies, the company believes a low-cost simple gravity plant could allow the project to provide substantial cash flow within a short time frame.
Experienced mining consultant Dr Evan Kirby has been retained to oversee the compilation of mining study parameters for the upcoming mining optimisation study. Initially he will assist with establishing the appropriate process scale based on the upcoming metallurgical costs followed by detailed costing for plant, infrastructure and operations.
Following the resource estimate a preliminary open pit mining optimisation study using these mining parameters will be conducted to establish the baseline economics of the project, to form part of an application for a mining licence and to assist with optimising future drill programs.