PERTH-BASED Metaliko Resources is edging closer to early stage cash flow following results from a scoping study for stage one of its Goongarrie gold project, a proposed mine, truck and treat (MTT) redevelopment near Kalgoorlie in WA.
The study estimated that redevelopment of the Goongarrie Lady open pit – which has a resource of 13,400 tonnes at 1.83 grams per tonne of gold – will initially yield between $4 and $5 million from a four-month mining program. “We are exceptionally pleased with the outcome of the study, which indicates a net cash flow considerably larger than the current $3 million market capitalisation of the company,” Metaliko managing director James Searle said.
“The $4 to $5 million from Goongarrie will enable Metaliko to accelerate progress on its larger scale discovery projects.” The scoping study was based on resource drilling and modelling, pit
shell analysis, metallurgical test work, hydrological investigations, and environmental surveys, focussed on deepening and extending the existing open pit to 35m from its existing depth of 20 to 25m.
Metaliko has reported that it expects to have mining approvals in place in the December quarter of 2012.
The Goongarrie project and Metaliko’s Anthill project are two MTT undertakings in the eastern Goldfields region that the company has drilled to resource stage.
Metaliko has reported that it is looking to generate interim cash flow from smaller gold resources that can be treated at existing plants in the area, while it continues to explore for major gold prospects.
Anthill has an indicated and inferred resource of about 160,000oz of gold.
The Goongarrie tenements contain numerous small, pre-1920s gold workings, prospecting pits and two shallow open cuts mined in the late 1980s.
Julia Mines – renamed Deep Yellow in 2003 – developed the Goongarrie Lady open pit in the late 1980s on a resource reported to be 58,100t grading 4.5g/t for 8,402oz. However, a pit wall collapse following heavy rains curtailed mining after only 28,606t grading 2.7g/t for 2,270oz had been produced. Metaliko has reported that there is believed to be remnant mineralisation
in the Goongarrie Lady pit floor and that the mineralisation has not been closed off toward the west.
By Reuben Adams