Spectrum Metals has announced a stunning maiden resource of 569,000 tonnes grading a whopping 16.8g/t gold for 306,800 ounces at its Penny North discovery near the Youanmi mineral province in WA.
This brings the entire Penny West project resource to 799,000 tonnes grading 13.8g/t gold for 355,500 ounces now.
Importantly, the ore body is still open in multiple directions and looks like it still has some impressing to do.
The mineralisation is open at depth and along strike and being shoot-controlled, has strong potential for extension, management said.
More than 75% of the ounces across the project now lie within the more confident “indicated” category, providing a higher level of certainty for the company as it starts to wrap some economics around it.
Spectrum is planning to complete its maiden ore reserve estimate for the project in the March quarter of next year.
The result comes less than eight months from the discovery of Penny North that sits just to the north of and almost below the historic Penny West open pit that was mined in the early 1990s.
Spectrum said the current resource equates to 1,480 gold ounces per vertical metre at the project, which is healthy and a solid foundation for a future mining operation.
Preliminary met work at the project indicates that the Penny West ores are free-milling with excellent average recoveries exceeding 99%.
Spectrum Managing Director Paul Adams said: “Spectrum is extremely pleased to be publishing this maiden resource only eight months from discovery of the Penny North Lode. At an all-in discovery cost of $10 per ounce this has been a very exciting year for all stakeholders in Spectrum and we anticipate the further rapid growth of this gold system. Planned drilling will also aim to bring the Magenta and Columbia prospects to resource status.”
Spectrum’s market cap touched $100m in trading today.
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By Matt Birney
