Wiluna Mining Corporation has boosted its global ore reserves by 10 per cent, even after mining depletion, to 36.8 million tonnes grading 1.2 grams per tonne gold for 1.42 million ounces at its namesake WA gold operation.
The company also posted an impressive 31 per cent increase in underground ore reserves to 861,900 ounces grading 4.11 g/t gold as it looks to focus on optimising Stage 1 development. Stage 1 production is forecast to produce between 110,000 to 125,000 ounces per annum once fully ramped up by the end of this year.
Wiluna says the significant uplift in its ore reserves re-affirms the company’s strategy that has over the past year-and-a-half been focused on systematic infill drilling at high grade zones to support near term production and operation of the newly commissioned Stage 1 flotation circuit.
Under the initial stage Wiluna has ticked off an impressive list of tasks including completing underground mine development in the northern portion of the mine, the successful commissioning of the concentrator and construction of the Wiltails retreatment operation which is due to be commissioned and operating from July this year.
Under the company’s multi-staged approach to developing the burgeoning Wiluna gold resource, the Stage 2 feasibility study which aims to take production up to 250,000 ounces of gold per annum was due for completion last month.
However, amidst rising costs, COVID disruptions, tightening skills shortages, ongoing disruptions in the supply chain and the global uncertainty surrounding the war in Ukraine and sanctions against Russia, the company says it will delay launching into its Stage 2 multi-million-dollar expansion.
Wiluna Mining Executive Chair, Milan Jerkovic says:“Regarding our ongoing Feasibility Studies, the Company has made the prudent decision to continue to work on these studies and delay the Stage 2 expansion at this time. We believe more work is required for the Stage 2 studies to be considered definitive especially with additional Resource and Reserve development drilling required in the southern end of the Wiluna Mining Centre. We also believe that pushing ahead with a large scale, capital challenging expansion in this current economic and social environment is not in the best interest of our shareholders and for this reason we will pause and optimise Stage 1, which we believe has considerable stand-alone potential and seek to continue our drilling and studies to “right size” the Wiluna Mining Operation going forward.”
Interestingly, with several minor, low-cost modifications the company says it could increase Stage 1 production incrementally to about 150,000 ounces per year.
Moving forward, Wiluna will look to boost its already sizeable multi-million-ounce resource with further drilling slated as the company aims to gain a greater understanding of the true size of the prolific gold system under its control.
Drilling will reportedly focus on the upper 600 metres of the Wiluna Mining Centre which surprisingly has seen the least amount of drilling.
Further feasibility studies are also touted to continue including assessing free milling opportunities in the project and third-party “stranded” free milling and sulphide opportunities in the Wiluna region.
In other news, the company recently reported some positive nickel and cobalt hits from its joint-ventured Wilconi project with A-Cap Energy. They include a 10m hit going 1.53 per cent nickel from 39m and a 14m section running at 1.33 per cent nickel from 22m.
Management said it is looking for further opportunities to monetise the nickel and lithium prospectivity of its tenure.
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