These new high-grade discoveries amount to a potential game-changer for the Rothsay Gold Project,” he said.
“The discovery of a new parallel shear at Woodley’s East during what was essentially sterilisation drilling is a very exciting development. This zone is located so close to the existing planned mine development that we are confident it can be developed and mined as part of the main Woodley’s Mine development, for little additional capital. Having to find a new location for the processing plant is always a nice problem to have!”
“In addition, the high-grade results returned from the area to the north of the Woodley’s Shear resource are remarkable for their consistency, with 9 out 16 holes returning intervals above 7 g/t Au and 13 out of 16 holes returning intervals above 1g/t Au. Given the tight drill spacing that we used for both the Woodley East discovery and the Northern Extension Zone there is no doubt in my mind that these will convert to a material number of resource ounces at an exceptionally cost effective conversion rate.”
“We now plan to follow-up these three zones at Woodley’s East, Woodley’s Northern Extension and the Clyde Ultramafic, as well as continuing the current diamond drilling programme to grow our resource base.”
“These programmes will necessitate a delay in delivering the Definitive Feasibility Study for the Rothsay Gold Project, however we believe they could have a multiplier effect on the current resource base, the production target and potentially the annual production profile.”
We are now beginning to form a much clearer picture of the overall potential of the Rothsay Gold Project. In addition to a near-term, high-grade production opportunity, we can now see a clear pathway to grow our gold inventory, both in the immediate near-mine environment and further afield,” he said.
“The regional exploration review has given us a much clearer understanding of the structural controls on the gold mineralisation in the field and highlighted opportunities to target potential repeats of the Woodley’s Shear Resource on parallel trends. The field is clearly mineralised but has been poorly tested, and as our geological understanding grows, so too does our confidence to test targets for new areas of high grade mineralisation.”
“In conjunction with the current diamond drilling programme, which is aimed at extending the resource to the north as well as down-dip, and the recently completed RC drilling campaign which targeted northern extensions of the resource, we expect to be in a position to deliver exploration news-flow on multiple fronts as we continue to advance the Definitive Feasibility Study towards completion.”
The only “bad” news is these new discoveries will delay the DFS, but this is a nice problem to have.
EGA Price at posting:
24.0¢ Sentiment: Buy Disclosure: Held
