Kalgoorlie Gold Mining has unveiled its maiden mineral resource for the company’s La Mascotte gold deposit near Kalgoorlie of 3.61 million tonnes at 1.19 grams per tonne gold for a total of 138,000 gold ounces.
The modelled resource footprint measures 700m north-south by 500m east-west and 140m below surface. KalGold says the deposit remains open at depth at a cutoff grade of 0.6 g/t gold with recently identified targets offering an opportunity for resource growth.
Calculation for the resource follows the completion of the company’s latest drilling program last month. The recent 12-hole 1750 metre RC campaign included four holes at La Mascotte in addition to eight holes of follow-up drilling for 885m at the project’s recent discoveries at Knockhill and Royal Star that lie to the north-west and south-east respectively of La Mascotte.
In total KalGold has completed 39 RC holes for 4324m in addition to seven diamond drill holes covering 895.6m that built on historic RC and diamond drilling data.
Latest assays show figures of 3m going 6.43 g/t gold from 61m including 1m at an impressive 17.9 g/t gold from 62m. Additional results contain 1m recording 1.62 g/t gold from 83m, 1m grading 1.58 g/t gold from 156m and 3m at 0.93 g/t gold from 163m in one hole. A second hole recorded a 5m intercept going 0.71 g/t gold from 173m and 1m at 1.53 g/t gold from 182m.
The resource is a first for a deposit in the Taurus goldfield. A non-JORC compliant estimate was compiled by Manor Resources in the 1990s however KalGold has significantly grown the size of the operation following its successful exploration program.
Kalgoorlie Gold Mining Chief Executive Officer and Managing Director, Matt Painter said: “This initial JORC (2012) Mineral Resource Estimate highlights our cost-efficient approach to building a mineral resource base and strengthens KalGold’s credentials as a highly effective gold discovery company.”
La Mascotte forms part of the company’s greater Bulong Taurus project that runs for 16km striking north-south and up to 9km east-west. The project is adjacent to and along strike from some successful and prominent gold explorers and miners.
Historical diamond drilling work at La Mascotte includes 1m going 84.1 grams per tonne gold from 67m, 10m grading 39.1 g/t gold from 128m and 2m at 12.41 g/t gold from 149m.
The area around La Mascotte has also seen its fair share of RC drilling. Some of the headline grabbing hits from those historical programs include 4m running 9.07 g/t gold from 118m, 5m at 7.11 g/t gold from 130m, 2m going 7.77 g/t gold from 130m and 1m grading 7.31 g/t gold from 87m.
Whilst KalGold is yet to conduct any metallurgical testwork at the site, the company says previous testing by Manor Resources show high recoveries are achievable.
The next steps for the operation include extensional and infill RC drilling for resource definition, metallurgical and geotechnical diamond drilling for testing recoveries in addition to preliminary mining studies.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
