High Grade Gold Assays Confirmed by Perth Laboratory
- High grade gold assays from the Aucu gold deposit confirmed by Perth Laboratory
o Average gold grade of: 6.95 g/t gold (166 samples)
o Highest gold grade of: 127 g/t gold (cut-off grade 0.7 g/t gold)
o Average copper grade of: 0.83% copper (244 samples)
o Highest copper grade of: 15.2% copper (cut-off grade 0.2% copper)
- Resource Estimation, Metallurgical and open pit optimisation study update
Duplicate Assays Demonstrate Quality and Grade of Aucu Gold Deposit
The average grade of the 166 duplicate gold assays is 6.95 g/t gold reported above a cut-off grade of 0.7 g/t gold. The average copper grade of 244 duplicate copper assays is 0.83% copper reported above a cut-off grade of 0.2% copper. The copper and gold mineralisation overlap and occur in adjacent structures at the Quartz Zone allowing mining of both metals from the same open pit potentially improving mining economics substantially.
The duplicate analyses were undertaking as part of the quality assurance requirements for the current resource estimation study.
2017 JORC Compliant Resource Estimate Update
The Company has recently engaged highly regarded mining consultants Optiro to complete a new JORC compliant resource estimate for the Aucu Gold Deposit. The Company expects the new estimate will add to the existing JORC compliant resource of 1.2Mt at 4.2 g/t containing 156,000 ounces of gold.
The existing resource starts at surface and has superb metallurgical characteristics (88.6% of the gold reports to the gravity concentrate and total recoverable gold is 99% via cyanide extraction). The current resource is also amenable to open pit mining.
The new resource estimate will incorporate the 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 Quartz Zone contains substantial visible gold, both in outcrop at surface and in drill holes at depth. Gold Mineralisation is still open in both directions and at depth. The Quartz Zone also contains substantial copper mineralisation adjacent to the gold mineralisation and in the alteration halo surrounding the quartz zone. The Company expects further drilling in 2017 to substantially expand the mineralisation at the Quartz Zone.
The Company has commissioned Optiro to compile a three dimensional model of the mineralised zones. Following a QAQC review of the duplicate assay data reported above Optiro will conduct the resource estimate which is expected to be completed and announced in March 2017.
Metallurgical Test Work Update
In conjunction with the resource estimate the Company is also conducting a substantial gold and copper metallurgical test work program to better outline potential processing options for the deposit. Provided the metallurgical test work produces the high gravity gold recoveries (88.8% gravity recoverable and 99% total recoverable gold) encountered in previous studies the Company believes that a low cost simple gravity plant could allow the project to provide substantial cash flow within a short time frame.
The metallurgical test work is underway and is expected to be completed and announced in March 2017.
Mining Optimisation Study
The Company is pleased to announce that experienced mining consultant Dr Evan Kirby in association with process engineers Scope Australia have been retained to oversee the compilation of mining study parameters for the upcoming mining optimisation study. Initially Dr Kirby 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 the above mining parameters will be conducted to establish the baseline economics of the project, to form part of an application for a mining license and to assist with optimising future drill programs.
Aucu Gold Deposit Summary
As previously reported (ASX releases 24 Mar 15 and 02 Apr 15), the Company announced a maiden inferred resource for the Aucu gold deposit above a cut-off grade of 1 g/t gold of 1.15 Million tonnes grading 4.2 g/t gold for 156,000 ounces of contained gold.
In 2015, drilling identified exceptional gold mineralisation to the east of the Upper Gold Zone (UGZ) over a strike length of at least 500 metres. Results included:
- 8 metres at 55.2 g/t gold from 66 metres including 1 metre at 89.9 g/t gold
- 4 metres at 59.9 g/t gold from 66 metres including 1 metre at 189 g/t gold
- 2 metres at 43.5 g/t gold from 86 metres
- 1 metre at 103.4 g/t gold from 74 metres
- 3 metres at 41.4 g/t gold including 1 metre at 71 g/t gold
- 4 metres at 23.8 g/t gold from 85 metres
- 2 metres at 22 g/t gold from 102 metres
- 1 metre at 58 g/t gold
In 2016, drilling east of the Upper Gold Zone identified further substantial mineralisation over an additional 300 metres of strike length. Results included:
- 11 metres at 15.2 g/t gold from 42 metres including 1 metre at 149 g/t gold
- 12 metres at 15.6 g/t gold from 82 metres including 2 metres at 79 g/t gold
- 12 metres at 5.1 g/t gold from 34 metres including 2 metres at 26.2 g/t gold
- 5 metres at 9.9 g/t gold from 3 metres
- 9 metres at 8.3 g/t gold from 96 metres
- 4 metres at 12 g/t gold from 49 metres
- 3 metres at 11.2 g/t gold from 13 metres
- 3 metres at 11.9 g/t gold from 45 metres
- 5 metres at 7.6 g/t gold from 93 metres
- 3 metres at 9.8 g/t gold from 9 metres
Substantial copper intersections include:
- 66 metres at 0.91% copper from 33 metres including 18 metres at 1.85% copper
- 24 metre at 1.34% copper from 71 metres including 7 metres at 5.1% copper
- 19 metres at 0.74% copper from 22 metres including 2 metres at 2.4% copper
- Mineralisation outcrops at surface over an elevation of at least 600 metres,
- Mineralisation remains open in all directions and at depth,
- Overall metallurgical recovery of all mineralised zones is 99%, and
- Gravity recoverable gold averages 88.6% (gold that reports to the gravity concentrate).
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About White Cliff Minerals Ltd
White Cliff Minerals Ltd is a Gold, Copper, Cobalt, Nickel resources and mining company listed in Australia (ASX:WCN). The Company is focused on developing low cost high value mineral deposits that have near term cash flow potential.
Major projects include the Aucu gold deposit that contains 484,000 ounces of gold (3mt at 5.1 g/t) starting at surface and Chanach copper deposit that contains 64,000 tonnes of copper (17.2Mt at 0.37% copper). Both projects have substantial blue sky potential with drilling covering only 5% of the known structures. In Australia the company is developing the Coronation Dam cobalt–nickel deposit where a maiden resource will be announced in the late 2018.
White Cliff Minerals Ltd