SIGNIFICANT INCREASE FOR TAMPIA MINERAL RESOURCE TO 700,000oz GOLD Highlights
• The new Mineral Resource estimate for the Tampia Gold Project, reported and classified in accordance with the JORC Code (2012), is 11.3 million tonnes at 1.91 g/t Au for 695,500 ounces of gold (0.5 g/t Au cut off), an increase of 125% over the previous 310,000oz estimate
• The new Resource estimate has exceeded our expectations and the target Mineral Resource assumed by the 2016 Scoping Study as required to enable development of a viable standalone single open-pit mining operation with robust financials.
• 90% of the new Mineral Resource is in the Indicated category which, subject to the completion of a Feasibility Study, may be converted to Ore Reserves.
• Most of the new Resource is less than 100m below surface, and comes to surface in three locations. • Simple resource geometry indicates future mining potential may enjoy an unusually high conversion of Indicated Resources to Reserves (+90%), and a low strip ratio.
• This estimate is a recoverable Resource and includes assumed internal and external dilution, as well as mining losses.
• The new estimate is based on a total 287 RC holes (36,339m), drilled on a 40m by 40m drill spacing covering an area 1,040m along strike by 550m down dip to a depth of 140m.
• An updated Scoping Study including optimisation and mine scheduling studies based on the new Resource will be completed in October 2017 to indicate initial project economics.
• Planning has started for drilling immediately around the resource area to test for extensions to gold mineralisation to the south east and at depth. This drilling should commence in early October.
• There will be a focus on drilling all of the 24 regional targets (including three major targets) before the end of March 2018. This work will involve grid auger drilling over the entire area of each anomaly followed by RC drilling where warranted, to establish which targets could potentially host additional Mineral Resources. This drilling should commence in November.