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Tagged with: Reports

Aug 2003 - Michelago Limited

Michelago Limited (MIC) – Advancing towards Gold Production in China

  • The approval of a number of resolutions on 16 July 2003, has paved the way forward for MIC to acquire a 60% interest in two joint ventures with 40% held by the Laizhou Jincheng Gold Mine Group (Laizhou Gold) in the Jinya Gold Mine and nearby Exploration tenements located in the Guangxi Zhuang Province of southern China.
  • A Chinese feasibility study was completed on the Jinya Gold Mine following 304 diamond drillholes, exploration level and shaft development, and minor mining of the near surface ore in 1995. The mine closed in 1997 (due to the ore’s refractory nature), after producing 380,000t at 5g/t. The Jinya ore was tested in early 2002 (as part of the feasibility study) and bacox recoveries were a very acceptable 95%.
  • However, a revised study and review of the data is being undertaken by Michelago. MIC have a conceptual schedule of commencing construction in January 2004, with trial underground mining starting in December 2004, and process plant commissioning in June 2005 for concentrate sales at 39,000ozpa from August 2005. MIC then intends to complete a feasibility study in April 2006 based on installing a bacox plant in Guangxi for production from November 2006.
  • The development of the Jinya Gold Mine is being driven by the 40% JV partner Laizhou Gold which is doubling the size of its Bacox plant (in the Shandong Province) to 200,000ozpa in November 2003 and needs refractory ore.
  • The Jinya gold ore mineralisation has been classified as Carlin-type by the US Geological Survey in a recent open-file. It has the potential to develop into a significant gold district, and has the advantage that it does not need to find a bacox plant to treat its ore, it already has an offtake agreement for a 95% recovery.

Aug 2003 - Independence Gold

Independence Gold NL (IGO) – Hitting the Jackpot !

  • On 7 August 2003, we visited IGO’s Long Nickel mine and its new underground development at Gibb South, with a small group of brokers, analysts, fund managers, and the media.
  • Initial grades had been regarded as relatively disappointing in the 5% to 6%Ni vicinity, compared to the drillhole intersections at about 7% to 10%Ni, but IGO had recently encountered a horizontal “seam” or lode of massive ore averaging 21%Ni (some samples are ~27%Ni). This seam was observed (by us) to be about 10cm to 2m thick, overlain by up to 1.5m of disseminated 4%Ni, as shown in Figure 1.
  • This latest nickel mineralisation is clearly bonanza, jackpot-style. However, the prize is perceived to be Victor South which has widths of massive ore up to 30m of 3% to 7%Ni, and a number of 10m at 10%Ni drillhole intersections. Development production could start by June 2004 after completing the remaining 1.8km to be driven in the improving ground conditions towards the south, by April 2004.
  • The budget forecast for 2003/04 is 150,000t at 3.3%Ni and should be the worst case scenario since the grade has been reduced by 10% from the 3.6% expected (based on the feasibility study of an average ~3.45% from Long, plus sweeteners). There is 2,000t of Gibb South on the ROM pad at 6% to 7% Ni, and the production tonnage may also have been reduced by 10% with 41,000t treated in JQ03.

Sep 2003 - Abelle Limited

Abelle Limited (ABX) – Innovation, Logic and First PNG Production possibly by 2005

  • Abelle’s PNG assets essentially consist of two regional, volcanic mega-complexes about 70km apart, and three significant mineralised systems, being Hamata- Hidden Valley (HHV), the Wafi Gold Complex (Wafi) and the Golpu Porphyry Copper-Gold Complex (also at Wafi). HHV is the most advanced, and is targeted to commence gold production during 2005, after about 12 months’ construction.
  • The 5% NPV for Abelle at current gold prices is almost A$2.80/share. However, it must be emphasised that this is only one of a number of possible scenarios, and there is significant potential for this valuation to be exceeded, simply through attaining slightly higher grades, or including Golpu, or success from any of the other promising adjacent prospects amongst the complexes of HHV and Wafi.
  • The scale of the complexes is huge, Wafi has a newly recognised >6g/t high grade Link Zone with potentially greater than 3.9moz, plus an existing ~4moz gold resource, and a number of gold orebodies within an inner radius of about 500m. Golpu has a delineated >90mt at 2.1% (cu-equivalent) copper-gold porphyry that extends beyond a depth of 1km from surface, & HHV consists of Hamata providing 350,000oz in early cashflow, followed by Hidden Valley / Kaveroi’s resource of >2moz gold and >37moz silver, amongst an overall resource base of ~4moz.
  • The 3 projects have a market stigma attached to them for their previous failure to be developed, but Abelle has made major innovative conceptual differences to previous feasibility studies, that dramatically improve their economics. Abelle has also re-interpreted Wafi as near horizontal mineralisation (and is verifying it through drilling), instead of the near vertical previous interpretations.
  • ABX is moving fast to bring HHV into production, scheduling completion of the feasibility study by the end of October 2003. Our site visit in August 2003 was part of a team examining where to construct the conveyor, access roads, plant etc.

Oct 2003 - Michelago Limited

Michelago Limited (MIC) – Producing >120,000zpa of Attributable Gold from About June 2004

  • The signing of a Letter of Intent (LOI) in Laizhou City, Shandong Province, PR of China on 23 September 2003, paves the way for Michelago (MIC) to acquire 51% of Shandong Tarzan Bio-Gold Co Ltd’s (BioGold) treatment operations. Which enables MIC to potentially produce >120,000ozpa of attributable gold from about June 2004 (depending on the timing of signing the Sino Foreign Joint Venture).
  • In addition, MIC signed an LOI with Laizhou Jincheng Gold Mining Company Ltd (Laizhou Jincheng, the parent company of BioGold) for an exploration JV in which MIC may earn a 51% interest in any gold resources below 500m from surface in an area of 10 sq km in the Jiaodong Peninsula of Shandong. The area includes the 3 small underground Jincheng mines that produce a total of ~25,000ozpa at a gradeof ~4.7g/t to 5.0g/t, and some strike extensions.
  • BioGold’s current treatment operations consist of an expanding biox plant that is currently producing about 70,000ozpa from refractory ore, a cyanide-leach plant producing about 130,000ozpa from non-refractory ores, and a 51% owned refinery that also produces about 100,000ozpa from dore, or a total of about 250,000ozpa currently attributable to BioGold for which MIC’s 51% should be >125,000ozpa.
  • MIC is still progressing with its SFJV to acquire a 60% interest in two joint ventures with 40% held by Laizhou Jincheng in the Jinya Gold Mine and nearby Exploration tenements located in the Guangxi Province of Southern China. Initial indications are that indicated and inferred resources to a depth of 280m could be 0.5moz at 5g/t. However, MIC appears likely to undertake further drilling with a view to extending the resources based on ideally producing 60 to 70,000ozpa and a higher ROI instead of 40,000ozpa.

Oct 2003 - Minotaur Resources

Minotaur Resources Ltd (MNR) – Bringing Prominent Hill into Production possibly by 2006

  • After acquiring 100% of the Mt Woods Joint Venture areas, MNR has farmed out the area to Oxiana Resources (OXR) such that OXR can acquire a 65% interest in the tenements that contains the Prominent Hill copper-gold discovery for $34m. The staged farm-in includes an initial $3.5m for infill drilling to result in a resource, followed by a $5m pre-feasibility, and then full feasibility study, which could result in Prominent Hill being in production by the end of 2006.
  • The effective Strategic Alliance between MNR and OXR is a good “combination”, leaving MNR to focus on exploration with OXR taking over the mining aspects of Prominent Hill assuming that it is viable to some degree.
  • The haematite breccia zone of the orebody appears to be consistently mineralised, for the northernmost limb, and a mineralised block can be estimated as containing about 70mt (our figures) (based on a conceptual block about 120m wide by 350m high by 1000m long) that allows for possibly a 30% reduction due to an apparent plunging grade distribution and assumes ~70% of the resource may be mineable.
  • At this stage, it is too early to estimate grades and model MNR until the resource has been determined after the infill drilling. Possibly, Prominent Hill could be a selective 1mtpa to 2mtpa producer initially mining higher grade >2.5%Cu-equiv areas, which were observed in the detailed drillhole 1m sampling as in DP005’s intersection of 209m @ 1.54%Cu & 0.9g/tAu including lengths of 7m to 8m at about3.0%Cu & 4.5g/t Au.
  • However, its actual throughput rate, be it 3mtpa sub-level open-stoping method or capex of ~A$200m depends on the feasibility study. A mine life of 20 to 25 years conceptually appears to be achievable and probably the target of the OXR farm-in.

Oct 2003 - Red Metal Limited

Red Metal Limited (RDM) – Applying a Fresh Approach to Finding Significant Copper – Gold Orebodies in Australia

  • The IPO Offer : Red Metal Limited (RDM) offered a subscription of 60m shares at 20c to raise $12m (minimum subscription $12m, underwritten by Grange Securities Ltd) to drill up to 40 (24 in the first 12 months) delineated copper-gold targets in 13 individual projects in Australia. There are also a number of other projects in joint venture discussion, with their own further drill targets.
  • RDM has secured an interest in a highly prospective portfolio of copper and copper-gold exploration properties in Australia through a Strategic Alliance and Sale Agreement with Phelps Dodge Australasia Inc, a subsidiary of Phelps Dodge Corporation, the world’s second largest producer (at about 1mtpa) of copper.
  • RDM are focusing their exploration on major, relatively high-grade copper, and copper-gold deposits located within the under-explored portions of the fertile Middle Proterozoic terrains (about 1.5bn to 1.8bn years ago), primarily in South Australia, Queensland, the Northern Territory and NSW. Deposit styles include Iron Oxide Copper Gold (IOCG) types similar to Olympic Dam and Sediment- Hosted types similar to the Mt Isa copper mine.
  • RDM use a fresh approach to finding major copper-gold orebodies through their application of sophisticated algorithms on geophysical data to map deep seated magmatic centres and the major faults which focus and control mineralisation. This approach has been applied to advance most of RDM’s more than 13 projects to drill-ready status over the past two years or so, and defined up to 40 targets. Any one of the targets could become a company-maker for RDM.
  • Such is the nature of RDM’s “Alliance” with Phelps Dodge (PD) that the first 3 projects to be drilled in DQ03 are joint ventures (Hawks Nest, Moonta and Browns) in which RDM is free carried by PD (to a decision to mine, provided PD elects to advance them), for 30% of PD’s 70% interest, or about 21% of each project.

Oct 2003 - Goldstar Resources

Goldstar Resources NL (GDR) – Reopening Victoria’s Walhalla Goldfield

  • The IPO Offer : Goldstar Resources (GDR) offered a subscription of 24m shares at 25c to raise $6m (minimum subscription $5m, sponsored by Southern Cross Equities) primarily to re-open the old Walhalla Goldfield in Eastern Victoria. GDR aims to establish an ~1moz resource at Walhalla, an up to 0.5moz resource at its Peak Hill prospect and evaluate at least three other prospects in Australia which have been previously explored but could be re-interpreted.
  • The main focus at Walhalla are the Cohen’s and Empress Reefs which lie along a 1.5km strike length of the delineated 4km long Cohen’s Line of Reef at Walhalla. The Cohen’s reef is not like the more common Victorian styles of gold mineralisation west of Melbourne, and instead is located east of Melbourne and is contained within an almost vertical shear zone.
  • Historic grades in the Cohen’s Reef were exceptionally high being up to 6oz/t or 190g/t over an average width of 45cm and strike lengths of 18m ahead of the mine closure in 1913 due to pumping and ventilation at depths >1km. Almost 1.5moz was extracted at an average grade of 1oz/t or 33g/t over the 1.5km strike length of workings.
  • Recoveries of up to 95% have been attained from gravity concentration testwork of the stockwork ore undertaken in the early 1990’s, which is in contrast to the market’s perception that Walhalla’s ore is refractory. The main Cohen reef historically attained recoveries of 85% to 90% (using stamp batteries). The misperception arose due to a pre-feasibility study of the stockwork resource in 1987 that attained low recoveries because it only considered direct cyanidation.
  • The exploration focus at Walhalla is on three styles of mineralisation, being the stockwork resource over the old Cohen’s reef workings, three possible extensions to the Empress lode system, and extensions to the Cohen’s reef that are greater than 5g/t. Extensions appear to be very possible, given that cut-off grades of up to 18g/t together with perhaps 3 to 8 g/t losses in tailings, infers that somehistorically classified “unpay” areas could be >10g/t.

Nov 2003 - EXCO Resources

EXCO Resources NL (EXS) – Using White Dam to Attain Early Cashflow

  • EXCO is an exploration company that has recently acquired a 40% interest in the Drew Joint Venture (with Polymetals, and is farming in to increase its interest to 60%). The Drew Joint Venture contains the prospective White Dam gold mine and surrounding properties (in South Australia), enabling EXS to attain early cashflow.
  • White Dam has a non-JORC resource of about 5mt at 1g/t (or 160,000oz), so EXCO are infilling to generate an accepted reserve and resource by about February 2004. After which a trial 30,000t to 50,000t heap-leach is expected to be commissioned as part of a scale up to full 1mtpa to 2mtpa production.
  • EXCO expects to use the early cashflow from the Drew Joint Venture to advance its expected copper operation at Mt Margaret, since the acquisition of White Dam provides EXS with two relatively advanced projects (Drew and Mt Margaret) that are both on the cusp of making the transition from exploration into production.
  • Mt Margaret lies immediately east of Ernest Henry in the Mt Isa district of Queensland. The recent discovery of higher grade near surface mineralisation (such as 29m @ 3.64%Cu & 1.28g/tAu, and 65m @ 2.55%Cu & 0.56g/tAu [including 9m @ 4.28%Cu and 25m @ 3.78%Cu]) has resulted in a review of the pre-feasibility study with a decision on the next stage of advancement expected in March 2004.
  • Should a small 0.5mtpa operation be established at Mt Margaret, then EXS’ other nearby regional prospects such as at Hazel Creek and Boomara could come into the viability equation, especially with Turpentine Creek’s (in Hazel Creek) 16m @ 2.94%Cu & 0.59g/t Au from 24m including 8m @ 4.28%Cu.
  • EXCO has established a select drill-ready portfolio of potentially promising Middle Proterozoic primarily copper – gold exploration projects, although the range does extend to include the other base metals such as nickel-PGM and leadzinc- silver. The projects are mainly in the form of a series of joint ventures in which EXS is largely the minor contributor with a major company providing the bulk of the exploration finance.

Nov 2003 - Terramin Australia

Terramin Australia Limited (TZN) – A New High Grade Zinc Stock

  • The IPO Offer : Terramin Australia Ltd (TZN) is offering a subscription of 25m shares at 20c to raise $5m (minimum subscription $5m, underwritten by Taylor Collison Limited) to complete feasibility studies on the relatively high grade Angas Zinc Project, re-interpret and advance the Menninnie Dam Zinc Project, and explore by JVs its pipeline of gold-copper projects, all in South Australia.
  • Some $1.1m of the raising enables TZN to complete its 1997 farm-in agreement to acquire a 60% interest in the Angas Zinc Project from the original JV partner Aberfoyle (since taken over by Western Metals, which is now in receivership). The agreement was extended for 2m TZN options in June 2003 to include Menninnie Dam (South Australia’s potentially largest lead-zinc deposit), and TZN has a call option over the remaining 40% in both projects.
  • It is possible to identify some continuity of a high grade mineralised zinc zone over 80m of strike at Angas (in diamond drillhole nos 29, 36 and 37, with 14m @ 21%Zn from 192m in DD29, 6m @ 16%Zn from 95m in DD36, and 12m @14.6%Zn from 45m downhole from surface in DD37). Copper mineralisation is minor at less than 1%, although lead and silver values can be material. In TZN’s opinion, the Sedex total (Fe+Pb+Zn) percentage content should be used to delineate the lode.
  • TZN think that the Menninnie Dam Zinc orebody has been misinterpreted and does not strike north-south, but is instead fault controlled east-west, and verification using the MIMDAS system is planned. If it is based east-west then most of the drilling of ~10 years ago was targeting an orebody in the wrong direction.
  • Although Terramin’s main focus is on high grade zinc projects and bringing them into production, it does also have a number of copper-gold projects of which the most advanced is the Gina Block part of the Ingomar Project (about 100km west of MNR’s Prominent Hill) where gold anomalies apparently coincide with folds and fault structures, and a major regional anticlinal fold has been interpreted.

Jan 2004 - Agincourt Resources

Agincourt Resources Ltd (AGC) – A >100,000ozpa Australian Gold Stock

  • Agincourt has acquired the Wiluna gold mine which has been producing about 117,000ozpa at cash operating costs of up to A$420/oz since SQ02. However, it can be transformed under AGC within 2 years to produce >140,000ozpa at cash operating costs of possibly <A$350/oz, from a combination of reopening the East-West >6g/t U/G Lodes replacing low grade 1.2g/t stockpiles, and higher oxide or other non-refractory feed from a number of prospects.
  • Apart from the prospects under the salt lake south of the mine (such as Regent and Williamson), there are other regional oxide prospects too. The old Wiluna mine has also been sparsely drilled at depth and most of the orebodies are open on strike and at depth. The expanded Wiluna mill is also very versatile, and can be subdivided back into a non-refractory (say oxide) and refractory (the biox) plant at minimal expense while achieving higher throughput and lower costs.
  • AGC appears to have a very high grade virgin orebody under the salt lake south of the mine, namely Williamson that so far has only been considered as a bulk lowgrade proposition, but potentially could be a materially profitable >10g/t operation if mined as relatively narrow high grade quartz veins (like the historic and current Wiluna underground), with downhole intersections such as 3m @ 20.4g/t above vertically lower down 6m @ 26.4g/t.
  • AGC’s current expected value is about A$1.50 to A$2.00 per share (using the standard 5% NPV applied to gold shares, being A$1.70 or A$100m over 9 years on 58.3m fully diluted shares). However, it has a high sensitivity to grade (which could easily be 10% higher) and that alone could increase the value by ~35%.

Mar 2004 - Gallery Gold Limited

Gallery Gold Ltd (GGN) – Bringing Mupane into production from Oct 2004

  • Following the merger with Spinifex in October 2003, Gallery Gold now has two very advanced projects, namely Mupane in Botswana and Buckreef in Tanzania. Mupane is the most advanced, having completed its BFS and is currently in construction with gold production expected to commence from October 2004.
  • Mupane expects to produce about 100,000ozpa to 120,000ozpa from treating 1.0mtpa at reserve grades of ~3.5g/t in mineralisation up to 70m wide. Examination of the sections in detail, shows that higher grades could be achieved from selective mining, and a higher grade core could result in underground mining extensions.
  • Gallery Gold is currently upgrading the resources of its newly acquired Tanzanian prospects and projects from Spinifex into JORC classifications, and then prioritising their development, focusing initially on Buckreef, Kitongo & Nyakafuru.
  • Gallery Gold’s properties surround Africa’s current major nickel province being LionOre’s Phoenix and Selkirk Tati nickel mines in Botswana. GGN has entered into a joint venture with Albidon Ltd (ALB, a Ni-PGM exploration IPO, listing in March 2004). GGN retain a 50% interest in most of its Tati nickel properties and a 35% interest in the Tekwane PGM prospect that is contained in the Selkirk gabbro.
  • GGN currently appears to be fairly priced based on a 5% NPV of A$0.24/share (including $35m for Spinifex’s net value) and a gold price of US$400/oz. However, Mupane’s grades and unit mining costs appear to be conservative, such that 10% higher grades can increase the NPV to A$0.32/share, and the Tanzanian assets should be capable of realising more, apart from the Botswanan potential.

Mar 2004 - Albidon Limited

Albidon Limited (ALB) – An Advanced Nickel – PGM float in Southern Africa

  • The IPO Offer : Albidon Limited (ALB) offered a subscription of 20m shares at 50c to raise up to A$10m in an AIM listing and an additional 10m shares at 50c to raise up to A$5m in an ASX listing at the same time (the minimum subscription is 20m to raise $10m). ALB’s IPO is to develop its existing portfolio of relatively advanced nickel - PGM exploration projects in Eastern and Southern Africa, and copper-gold & zinc-oxide projects in North Africa.
  • Albidon have delineated an “S” shaped Ni-PGM sulphide trend through Eastern and Southern Africa which can be correlated with the global “Grenville Trend”. The “Grenville Trend” is based on a comparison with the host rocks of Voisey Bay in the Middle Proterozoic – a geological era well known for hosting a number of the world’s famous metallogenic provinces. ALB’s Ni-PGM sulphide trend starts at Barrick/Falconbridge’s Kabanga Nickel project in Tanzania, and passes through Malawi and Zambia before reaching the Tati area of Botswana.
  • ALB have established a number of projects along the trend and explored them to some degree since 2000 to result in projects that range in maturity from delineated resources through drill-ready to almost virgin ground. The most advanced project is Munali, about 60km south of Lusaka in Zambia which has an existing resource over its SE corner, (that may still require further interpretation) with encouraging intersections such as 15.5m (~7m true width) at 2.1%Ni and 2.6g/t PGM.
  • There are three joint ventures namely with Gallery Gold in the Tati Ni-PGM region of Botswana (which has aeromag completed and delineated targets), with WMC Resources over Mpemba Ni-PGM in Malawi, and with BHP Billiton over Trozza (Zn) in Tunisia. Munali Ni-PGM has also been a joint venture, with the Lion Selection Group’s African Lion Limited, who is the major shareholder in Albidon.
  • ALB also has a copper-gold project and zinc project in Tunisia, which like the other targeted project areas was delineated on the basis of adequate infrastructure, relative political stability, attractive fiscal regimes and demonstrated geological prospectivity.

Apr 2004 - Sino Gold Limited

Sino Gold Limited (SGX) – Bringing Jinfeng into Production at 200,000ozpa

  • Sino Gold currently has two main projects in Central China, being its Jianchaling operating gold mine in the Shaanxi Province and its Jinfeng project in Guizhou Province. There are a number of other projects mainly in Northern China that are at various stages of acquisition and exploration.
  • Jianchaling has been winding down from 100,000ozpa in 2002 to possibly only 50,000oz in CY2004. Extensions to its life and potential increases to its production appear to be almost certain with 5 gold target areas being explored, however, at this stage their eventual actual outcome is almost impossible to predict.
  • Jinfeng is in the process of completing its feasibility study, which with over 3moz in resources and extensions to the stratabound mineralisation with intersections up to 59m @ 8.6g/t infers that board approval should be a formality. Gold production is expected to commence in early 2006 and build up to 200,000ozpa during that year.
  • Apart from potential success and ultimate production in its other joint venture projects in Shandong Province with Gold Fields, and over White Mountain in Jilin Province, SGX is at the negotiation stage in its “China Review Project” to obtain one or more joint venture agreements on non-refractory (free milling) gold projects that could be finalised in 2004, and which could then be brought into production.

Jun 2004 - Pan Aust Resources

Pan Australian Resources NL (PNA) – Starting Gold (and later Copper) Production in Laos from March 2005

  • PNA is still relatively on-track for the targets it gave in July 2003, with the BFS on the Phu Bia Gold Project expected to be completed in July 2004, and 1.5mt to 2.0mtpa heap-leach initial production from the Phu Kham (PK) gold cap targeted to commence at 50,000ozpa to 70,000ozpa during the first quarter of 2005.
  • For the Phu Kham copper-gold orebody, the current concept is to complete the BFS by mid-2005, for a 9mtpa to 12.5mtpa operation producing >60,000tpa copper and >50,000ozpa gold or so in concentrates, starting possibly by mid-2007.
  • Both Projects have the capability of producing higher grades in their initial years, which could result in higher production, improved cashflows and lower pay-back times.
  • The Phu Bia Gold heap-leach plant is expected to be located between the PK gold cap and the Long Chieng Track (LCT) gold deposit. LCT is expected to be treated after the gold cap, followed by Ban Houayxai (BH). Gold resources as at 4 June 2004 are 570,000oz, and are expected to be upgraded further from the current drilling of the gold cap resulting in revisions to the BFS in July, and ahead of final pit designs in September 2004.
  • Construction has been timed to occur between the “wet” seasons. With all approvals expected to have been received by mid-October 2004, so that main construction can occur from October 2004 to January 2005, stacking of heaps in February 2005, and the first gold pour in March 2005.

Jun 2004 - Agincourt Resources

Agincourt Resources Ltd (AGC) – Heading for 200,000ozpa Gold Production

  • The recent intersections at Williamson, so soon after the Calais discovery illustrate the impact that the Agincourt management team is having in transforming the old Wiluna mine into a potentially long life asset with significant production growth.
  • The approval of the East-West Lode project takes Agincourt over 130,000ozpa, add Calais and 150,000ozpa is attainable, add Williamson and other properties and AGC could be heading towards 200,000ozpa. Our modelling shows that the mills can be kept full just on refractory ore, and treating Williamson could then be achieved through a separate 0.4mtpa or larger mill, and that results in ~200,000ozpa.
  • Calais appears to be a high grade (~10g/t or so) link zone between East Lode and Woodley, extended over 1km on strike and open at depth. It consequently has the potential to become a classic 600,000oz to 1moz Wiluna – type orebody, and depending on the deeper intersections, could even exceed 1moz.
  • Williamson’s transition zone was historically essentially overlooked due to drilling difficulties with the lake rig, whereas from the Causeway access, RC drilling has already produced material intersections such as 36m @ 3.6g/t incl 16m @ 6.75g/t in the transition zone, which could result in a significant non-refractory source of ore.