Grade control drilling results have shown shallow mineralisation continuity at Venus Metals Corporation and Rox Resources’ Grace deposit that forms part of the joint venture’s Youanmi gold project near Mount Magnet in WA.
The partners say the latest results reconcile well with the area’s resource model and further de-risk the deposit ahead of commercialisation.
Geologists often use grade control figures to determine whether there is a viable return on investment when mining the resource.
Both companies say the Grace deposit presents as a potential opportunity for early open-pit mining.
Venus holds 30 per cent and Rox holds the remaining 70 per cent in addition to management duties of the near-mine gold operation.
The latest results include 7m going 35.32 grams per tonne gold from 33m, 5m reading 15.23 g/t from 3m and 5m recording 14.29 g/t from 41m.
Another highlight was one 6m intercept going 11.85 g/t from 0m.
Planning for the Youanmi gold project is looking at early development and cash flow generating opportunities including the Grace area where mineralisation starts from surface.
Rox says the latest results support earlier resource work and indicate a strong likelihood of economic mineralisation in the area.
Youanmi historically produced 667,000 ounces of gold at 5.47 grams per tonne from several open pits and underground mines until its closure in the 1990s.
The granite-hosted Grace deposit holds a maiden 109,000-ounce resource at 6.95 g/t gold near the historical main pit at Youanmi.
In April the duo lifted the Youanmi operation’s near-surface resources by 204,000 ounces to break through the 1 million ounce barrier and boosted the project’s total gold resource to 3.2 million ounces through extensive exploration.
Youanmi is on a 36km strike length of its namesake greenstone belt and within touching distance of the Ramelius-owned Mt Magnet gold mine.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
