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Strong Gold Drilling Results Point to Resource-Reserve Update at Nimbus Project
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MacPhersons Resources (ASX: MRP) is pleased to advise that drilling at its Nimbus silver-zinc-gold project near Kalgoorlie has established strong continuity of gold mineralisation between a series of planned open pits, paving the way for an increase in resources and reserves.
MacPhersons has completed drilling of gold zone and commenced resource modelling for the Bankable Feasibility Study (BFS).
The drilling was undertaken at the Boorara gold deposits within the Nimbus project. MacPhersons planned to develop up to 7 separate open pits (“sub-pits”) at Boorara, which would provide gold ore for the heap leach operation at Nimbus, 2km away.
However, the latest drilling, which was done as part of the Nimbus Bankable Feasibility Study (BFS), intersected substantial mineralisation in the areas between the planned pits. This mineralisation is expected to have an average grade of about 1g/t, which is in line with the existing reserve grade at Boorara (3.3Mt at 1g/t gold – see page 13).
In light of these results, MacPhersons believes it will reduce the number of open pits at Boorara to just two or three larger and deeper pits.
It now also expects to complete a resource update in the March Quarter of next year, with a reserve update and finalised mine plan to follow early in the June Quarter. This will then complete all the Boorara-related work needed for the Nimbus BFS.
The drillhole samples were also used for final metallurgical signoff and this testwork has also been completed to BFS level.
Drilling is continuing at the Nimbus silver-zinc-gold lenses as part of the BFS, which is due for completion early in the June Quarter next year.
The drilling programs are aimed at extending the overall project inventory and increasing the existing mine life beyond 5.5 years.
At the Boorara deposits, the latest drilling returned a number of higher-grade intersections (up to 120g/t gold) which were open at depth and along strike (See Table 3 for highlighted results. A complete listing of assays is given in the JORC Table 1 Section 2 listing attached as an Appendix to this report).
The geo-technical diamond drilling was done mainly for the open pit wall design and therefore these holes were drilled outside the mine model. However, considerable mineralisation was encountered which will be considered in the new design model.
The final assay results will be received in November.
MacPhersons is making strong progress with all aspects of the Nimbus BFS.
Andrew Lawry, who was recently appointed as Group Project Manager, is overseeing the finalisation of the Sedgman Engineering inputs for the expanded processing plant flowsheet and capital costs.
Board has endorsed several savings initiatives which should be completed by the end of the year. These include use of an independent consultant to review market salary and employment conditions for directors and staff to ensure that MacPhersons is operating within market practice.
The rigs used to drill the gold zones are now drilling the silver-zinc lenses. This will continue through to Q1 2015. The silver-zinc resource and reserve update at Nimbus will be completed for the BFS in Q2 2015.
The overall project economics of the Nimbus project remain robust as the falling value of the Australian dollar continues to offset lower US dollar commodity prices and as contractors and suppliers continue to reduce prices.
Success in growing the Nimbus inventory sufficiently to extend the project’s forecast mine life beyond 5.5 years, along with reductions in mining and processing costs, would in turn deliver significant benefits to the project’s overall economics, including shareholder returns.
For more information on MacPhersons Resources Limited and to subscribe for regular updates, please visit our website at: www.mrpresources.com.au or contact our Kalgoorlie office on info@mrpresources.com.au or 08-9068-1300.
For further information, please contact:
Paul Armstrong / Nicholas Read
Read Corporate
+61 8 9388 1474
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