OzAurum Resources Ltd (ASX:OZM) has produced an initial mineral resource estimate (MRE) for the Mulgabbie North Gold Project, offering a glimpse of its upside potential just two years after work began at the West Australian gold camp.
The resource contains 11.6 million tonnes of material in the measured, indicated and inferred categories at 0.70 g/t gold for 260,000 ounces at a 0.3 g/t gold cut-off grade.
This maiden estimate is based on 79,689 metres of aircore, reverse circulation (RC) and diamond drilling completed on the property to a maximum depth of 150 metres below the surface over the last two years.
Some 64% or 167,000 ounces, of the MRE consists of measured and indicated ounces, providing the gold explorer with a solid basis for the foundation of the Mulgabbie North heap leach scoping study.
With gold mineralisation open along strike and at depth, the company is planning extensional drilling to grow the MRE.
Mulgabbie North MRE.
Confidence to move forward
OzAurum chief executive officer and managing director Andrew Pumphrey said: “OzAurum has made excellent progress at the Mulgabbie North Project achieving this significant milestone for the company within the short period of just two years since listing.
“This 260,000-ounce initial MRE with 64% of the contained ounces in the measured and indicated categories provides us with the solid basis to undertake further technical works on the Mulgabbie North heap leach scoping study.
“I would like to take this opportunity to thank all hard-working OZM staff, the geological and mining consultants involved, Geobase database consultants, ALS Laboratories Kalgoorlie, the drillers and staff at Raglan Drilling Kalgoorlie.
“The high standard of work that has been undertaken and maintained on all the various aspects and levels of activities that have been used to estimate this initial MRE gives us great confidence to move forward with this project.”
Future drilling
The Mulgabbie North Gold Project is about 135 kilometres northeast of Kalgoorlie in the world-class gold district of Western Australia’s Eastern Goldfields.
It consists of five prospect areas covering 126 square kilometres - James, Ben, Alicia, Demag Zone and Paleochannel.
The project’s MRE expansion potential, through future drilling, has the potential to connect gold mineralisation between James, Ben, Demag and the Alicia prospects.
Recent re-interpretation and re-logging of aircore drill chips has confirmed the Mulgabbie North paleochannel extends for more than 3.8 kilometres and will be the target for future drilling programs.
Mulgabbie North MRE looking to the northeast.
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