Predicted an increase in underground mining personnel and up tempo on development of Eaglehawk.
Development along 1100 level has advanced horizontally for a distance of 150 metres and included three high grade sections of 13.5 metres, 38 metres and 30 metres that remains open along strike for a total of +81.5 metres.
Note that the sections between the high grade zones carry (mostly)low grade gold mineralisation along the overall shoot system. So the entire 150 metre horizontal shoot system is mineralised.
At the 120 metre mark the Eaglehawk shoot system runs parallel with the newly discovered Western Reef system. At this point we have two systems that are 9 metres + 3.7 metres wide for a total of 12.7 metres in width and open.
ORS has been processing the low grade developmental ore from development along the 1100 development on Eaglehawk and stockpiled an additional 3,000 tonnes of material that is estimated at 9 g/t au for (my estimate) of 871 ounces of gold.
This is before the 30 metres of the mineralised Western Reef is extracted for an estimate of 1,820 tonnes at 6.8 g/t au for an additional 399 ounces AND the development continues horizontally to define the extent of both the Eaglehawk and Western Reef along the horizontal drive.
So the total (my guesstimate) of gold extracted to date along the 1100 level is at least 1,270 ounces of gold, plus some additional gold extracted from low grade material. My total guesstimate is around 1,300 - 1,400 ounces of gold. Total value is $1.8M - $1.96M.
A new team of miners will be hired and development of the 1120 level will be commenced. I assume that they will be able to advance 100-150 metres over the next 3 months and potentially produce a similar amount of gold (assuming no significant variability in the system at that level).
The first team will continue to develop along the 1100 level. IF the Eaglehawk and or Western Reef continue for a significant distance, will trigger a very significant re-rating in ORS.
Good luck to all longs
ORS Price at posting:
5.1¢ Sentiment: LT Buy Disclosure: Held
