Exploring
Penny's Find — Gold - JV

60% Interest

At the Penny’s Find project located 50 km northeast of Kalgoorlie, the Company has outlined an open pit probable reserve of 146,000 tonnes @ 4.62g/t Au (21,700 ounces) within an overall JORC 2012 compliant resource of 470,000 tonnes @ 4.42g/t Au (66,800 ounces).

Empire Resources Ltd holds a 60% direct interest in this gold project situated on granted Mining Lease 27/156. The remaining 40% interest is held by unlisted Brimstone Resources Ltd.

The gold mineralization at Penny’s Find is associated with quartz veining developed at the sheared contact between mafic volcanics and sediments. The mineralization occurs over a strike length of 250m, averages 8m thick and has been defined to a depth of 180m below surface. Limited diamond drilling has shown high grade gold values continue to at least 250m depth with the existing resource being open at depth.

Metallurgical testwork has shown both oxide and fresh mineralization to be free milling with a high gravity recoverable gold component (53% for oxide and 85% for fresh). Total gold recovery in 24 hours was 98% for oxide and 99% for fresh.

Reportable In Situ Mineral Resource by location and cut-off
Open Cut (0.5g/t)
Underground (1.5g/t)
Combined
Class
Tonnes
Au g/t
Tonnes
Au g/t
Tonnes
Au g/t
Measured
Indicated
218,000
4.64
84,000
4.90
302,000
4.71
Inferred
82,000
1.79
86,000
5.89
168,000
3.89
TOTAL
300,000
3.86
170,000
5.40
470,000
4.42

PENNY'S FIND OPEN PIT ORE RESERVE - FEBRUARY 2016
DESCRIPTION
TONNES
GRADE g/t Au
GOLD TO MILL (ozs)
PROVED
PROBABLE
146,000
4.62
21,700
TOTAL
146,000
4.62
21,700

The Penny’s Find ore reserve is contained within a single open pit mined to a depth of 80m with ore trucked off site for treatment through a toll milling facility using conventional gravity recovery and a CIL circuit. It has been calculated at a gold price of AUD$1,500 per ounce and a lower cut-off grade of 1.41g/t Au.

The Company has lodged a Mining Proposal with the WA Department of Mines and Petroleum with a view to commencement of open-pit mining from mid-year and first gold production in the second half of 2016.

A scoping study has also commenced on gold mineralization located below the planned open pit where there is an indicated and inferred resource of 170,000 tonnes @ 5.40g/t Au. A preliminary underground mine design has been undertaken to ensure the final open pit design is able to mesh smoothly with any possible future underground development.

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Penny’s Find Resource Model showing blocks above 0.5g/t Au

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Penny’s Find Preliminary Underground Mine Design

 

 

Ramm&Co Design