Focus Minerals Ltd (ASX:FML) Resource Updates Add Over 125,000 Inferred Ounces To Coolgardie Gold Project
Perth, July 28, 2009 AEST (ABN Newswire) - Australian-based gold producer Focus Minerals Ltd (ASX:FML) is pleased to announce an increase to its overall total resource base (Indicated and Inferred) to 23.4Mt at 2.6g/t Au for 1.92m ounces of contained gold at the Company's Coolgardie Gold Project, located in Western Australia's Eastern Goldfields.
The additional JORC-code compliant Inferred Resource estimates were made possible through a programme of historical validation and re-modelling carried out at the Company's Empress/Alicia, Hillside, Big Blow and Happy Jack deposits. This result is based on extensive work from a two year collation and validation programme combined with preliminary optimisation based on a stronger gold price.
Table 1 - Inferred Resources Following Recent Activities
Previous Upgraded Increase Resource Resource Tonnes Au g/t Ounces Tonnes Au g/t OuncesEmpress/Alicia 550,000 1.6 27,300 880,000 1.8 49,800 83%Hillside N/A 670,000 3.0 69,500Big Blow 270,000 2.7 23,400 520,000 3.0 50,900 115%Happy Jack 100,000 1.5 5,100 270,000 1.7 10,900 110%TOTAL 920,000 1.9 55,800 2,340,000 2.4 181,100
Empress/Alicia
The revised Empress/Alicia resource model is based on the validation and an updated interpretation of all historic data in the deposit area. The resource has been classified as Inferred due to the lack of Quality Assurance/Quality Control (QA/QC) data in the historical drilling.
The validation, in combination with strong local geological knowledge of the Tindals system, has had a significant impact on the new geological model, with the Resource comprising 14 lodes that are broken into three groups. The Empress Lodes (8 in total) strike 022DEG and dip 80DEG.W, the Alicia Lodes (3 in total) strike 005DEG and dip 65-75DEG.W and the Fold Nose Lodes (3 in total) dip 65-80DEG.N round the fold closure.
The Empress Lodes are open to the south, while the Alicia Lodes are open to the north. All lodes are open at depth. A drilling program is planned for September in order to convert the Inferred Resource to an Indicated status.
Table 2 Empress/Alicia Resource -(INFERRED)
Category Tonnes Au g/t Ounces----------------------------------Empress Lodes----------------------------------OxideTransitional 13,000 1.70 700Fresh 241,000 1.90 14,400Sub Total 254,000 1.90 15,100----------------------------------Alicia Lodes----------------------------------Oxide 3,000 1.60 100Transitional 21,000 1.80 1,200Fresh 504,000 1.70 28,000Sub Total 528,000 1.70 29,300----------------------------------Fold Nose Lodes----------------------------------OxideTransitional 5,000 1.60 300Fresh 89,000 1.80 5,100Sub Total 94,000 1.80 5,400----------------------------------Total InferredResource 876,000 1.80 49,800
Hillside
The Hillside resource model is based on the validation and interpretation of all historic data in an area south-east of the Lindsays deposit.
The validation and interpretation of historical data to the south-east of the Lindsays pit has led to a geological model of the Hillside deposit which comprises 3 lodes. The main Lodes (2 in total) strike 010DEG and dip 40DEG.E and the NW Lode (1 in total) strikes 315DEG and dip 40DEG.NE.
The Hillside mineralisation appears to be closed off to the south and north. The deposit however is open at depth, where the higher grades were intersected.
Table 3. Hillside Resource - (INFERRED)
Category Tonnes Au g/t Ounces------------------------------------OxideTransitional 15,000 1.00 500Fresh 657,000 3.10 65,400Total Resource 672,000 3.00 65,900------------------------------------
Big Blow
The Big Blow resource model is based on the validation and an updated interpretation of historical drill data, as well as limited drilling done by the Redemption Joint Venture (RJV) in 2006.
This has led to an updated geological model for the Big Blow deposit which is comprised of 5 lodes. The lodes at Big Blow strike 015DEG and dip 80DEG.E.
The Big Blow mineralisation is open along strike to the north and south, with only shallow RAB drilling having being undertaken outside of the known resource areas. The deposit is also open at depth where the majority of the high-grade intersections are found.
Table 4. Big Blow Resource - (INFERRED)
Category Tonnes Au g/t Ounces--------------------------------------Oxide 3,000 1.30 100Transitional 86,000 2.20 6,000Fresh 435,000 3.20 44,800Total Resource 524,000 3.00 50,900--------------------------------------
Happy Jack
The Happy Jack resource model is based on the validation and an updated interpretation of historical drill data, as well as limited drilling done by the Redemption Joint Venture (RJV) in 2006.
This has led to an updated geological model for the Happy Jack deposit which is comprised of 5 lodes. The Happy Jack lodes strike 000DEG and are vertical.
The Happy Jack mineralisation is open along strike to the north and south. It is also open at depth with the majority of drilling no deeper than 60m vertically, and very limited drilling to 100m in vertical depth.
Table 5. Happy Jack Resource - (INFERRED)
Category Tonnes Au g/t Ounces--------------------------------------Oxide 1,000 1.50 50Transitional 15,000 1.70 800Fresh 182,000 1.80 10,050Total Resource 198,000 1.70 10,900--------------------------------------
Preliminary Optimisation
Preliminary optimisation work has been completed for the Empress/Alicia deposit, with encouraging initial results. At a gold price of A$1,000/oz and a recovery of 93%, the preliminary optimisation studies reported a possible open pit mining scenario of 0.18-0.22Mt @ 2.0-2.2g/t.
Preliminary optimisation work on Big Blow and Happy Jack has also been completed (these would be mined simultaneously). Possible mining scenarios of 0.1 Mt-0.13Mt @ 2.1 - 2.4 g/t for Big Blow and 0.05 Mt @ 1.8 g/t for Happy Jack have been generated at a gold price of A$1,000/oz.
Preliminary work on Hillside has shown that it will most likely be an underground operation or would form part of some future larger mining operation at Lindsay's.
Optimisation and technical work is at a very early stage and is currently based only on Inferred Resources; however, it has given the Company enough encouragement to proceed further with these projects.
Resource Development
On the back of the encouraging results from the preliminary optimisation studies on the Empress/Alicia deposit, a drilling campaign will commence towards the end of the September Quarter. The aim of this is to confirm the results of historical drilling (QAQC drilling), provide density data and to expand the Resource, which will in turn enable the majority of the Resource to be converted to an Indicated Resource.
Summary
Focus' Chief Executive Officer, Mr Campbell Baird, said the upgrades highlighted the massive potential of the Coolgardie Gold Project tenement area to deliver additional high-grade Resources and Reserves ahead of commissioning of the Three Mile Hill Plant later this year:
"We view the definition and development of additional high-grade, easily accessible resources as central to both our short and long-term objectives for sustainable production," said Mr Baird. "These results serve to further underpin the Company's strategy to refurbish Three Mile Hill," he added.
"A great deal of time and effort has gone into the collation and validation of the vast amounts of historical data on offer, and our exploration and mining team - under the guidance of our Exploration Manager Garry Adams and Mining Manager Clint Baker - is to be congratulated on their success,"
"We also currently have a drill rig operating and in combination with continuing optimisation studies, we're confident of continuing to build the Resource base and ultimately, converting these Resources into mineable Reserves in the near future," he added.
For the complete Focus Minerals Announcement, please click the link below:
http://www.abnnewswire.net/media/en/docs/61125-ASX-FML-454223.pdf
About Focus Minerals Ltd
With over 3.8Moz of Mineral Resource, Focus Minerals Limited (ASX:FML) has a highly strategic portfolio of assets across Australia's two leading gold producing districts – the Kalgoorlie/Coolgardie belt and Laverton – and the financial muscle to continue to unlock further potential for growth.
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