New gold potential at Penny’s Find

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 27 Apr 2012   Posted by admin


EMPIRE Resources has discovered a high-grade gold intersection at its Penny’s Find deposit in Kalgoorlie, confirming the underground potential of the project.
All four reverse circulation drill holes, targeted beneath the base of a potential open pit intersected quartz veining with gold mineralisation. Intersections included: 6m grading 13.34 grams per tonne of gold from 113m, including 4m grading 19.43g/t of gold; 2m grading 12.95g/t of gold from 101m, within 8m grading 4.02g/t of gold; and 3m grading 14.42g/t of gold from 143m.
A new hanging wall lode was discovered from an intersection of 16m grading 2.34g/t of gold from 20m, which Empire believes is the first indication that there may be a second mineralised
lode at Penny’s Find.
The shallow mineralisation currently remains open along strike to the southeast. Empire managing director David Sargeant said these high-grade gold intersections confirmed the potential for
Penny’s Find to host an underground operation beneath an open pit. “I’m extremely confident further drilling will substantially increase the resource ounces leading to the development of a mining operation,” Mr Sargeant said.
“The proximity of this deposit to Kalgoorlie, the current high gold price and the possibility of mining a substantial portion of the deposit by open pit methods also confirms the value of this resource.”
Penny’s Find, 50km northeast of Kalgoorlie, contains a JORC-compliant near-surface resource of 314,000t grading 5.2g/t of gold for 52,500oz, of gold, defined to a vertical depth of about 150m and remaining open at depth.
Earlier metallurgic test work at the deposit has shown both oxide and fresh mineralisation to be free milling, with a high gravity recoverable gold component greater than 60 per cent and total gold recovery greater than 96 per cent.
Empire, which focusses on the exploration of gold and copper deposits, currently holds a 60 per cent interest in Penny’s Find, with Brimstone Resources owning the remaining 40 per cent.
In September 2010, Empire entered into a staged sale agreement with unlisted Brimstone, which plans to bring the deposit into production. The updated terms of the agreement involve a cash payment of $3 million for a 100 per cent interest in the project or purchase of a 51 per cent share by expenditure of $750,000 by September 30, 2012.
A 75 per cent interest can be gained by expenditure of an additional $750,000 by June 2013.

 

Helena Bogle


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