A successful structural study has outlined 11 priority targets for drilling at Paynes Find Gold’s flagship project 420km northeast of Perth.
These include four ‘walk up’ reverse circulation (RC) drilling targets, as well as seven areas requiring further definition through shallow rotary air blast (RAB) drilling within the company’s 940 hectare tenement package.
Paynes Find plans to submit a program of works to the WA Government for a 14,000m, 40-day RAB drilling program. Following a review of these results, it is expected to re-rank targets and plan the final coordinates for an 11,000m, 70-day RC drilling program. “Given the company’s recently announced mining services agreement on June 4 and associated 50 per cent profit share, Paynes Find anticipates being in a sound position to fund a follow through with the recommendations made by its expert geological team and will manage timing of the staged program accordingly,” the company said in a statement.
On 4 June, the company reached a milestone agreement with MJF Mining Contractors who would perform open cut mining of certain shallow high grade lodes at the project.
Under the agreement, MJF would upgrade the existing mining and processing operations at Paynes Find and would also move into immediate development of two pits.
Paynes Find Gold is currently carrying out small scale workings to produce alluvial gold at the project, using an alluvial gravity circuit plant with mill and knudsen concentrator capable of processing ore at 50t per hour.
The June agreement would target an increase in processing capacity to at least 20,000t per month within six months, as well as upgrading the processing plant capacity to 200t per hour. Within the company’s tenement area, 10 major gold-bearing lode lines have been identified, together with 36 high grade historic gold mines. According to the company, it has explored just 5 per cent of the total area available for gold mineralisation.