Explaurum Limited (ASX:EXU) (“the Company” or “Explaurum”) is pleased to announce the results of the scoping study (“Scoping Study” or “Study”) for the Tampia Gold Project (“the Project”) located in the wheatbelt of Western Australia, approximately 250km east of Perth near the township of Narembeen.
Preliminary economics indicate the Project has robust financial metrics over an initialsix year mine life with low capital and operating costs providing early project payback. Scoping Study Key Results:
• Based on single open pit mining operation with ore being processed at a rate of 1.5Mtpa through an onsite plant.
• Low cost, high margin, low technical risk project.
• 94koz per annum production over first five years with Life of Mine (LOM) gold production target of over 500koz with a mine life of six years.
• LOM gold production target based on 8.1 million tonnes grading 2.1g/t Au in-pit resource (94% Indicated Resources and 6% Inferred Resources).
• Initial capital cost of A$95M with estimated payback period of 1.5 years using A$1,650oz gold price.
• Estimated LOM C1 operating costs of A$799oz1 .
• Estimated LOM all in sustaining cost (AISC) of A$888oz2 (lowest industry quartile).
• Demonstrates Tampia is one of the highest margin undeveloped gold projects in Australia.
• This Scoping Study presents a base case scenario and does not include organic growth from the Tampia Gold deposit or other regional prospects.
The Tampia Gold Resource remains open and future resource upgrades across the Company’s broader project area are expected to provide significant opportunity to expand mine life at potentially higher annual production rates.
EXPLAURUM COMMENCES MAJOR EXPLORATION PROGRAM AT TAMPIA
• A major exploration program of 24 high priority regional gravity targets discovered earlier this year has commenced. This program will also include testing for lateral and depth extensions to the Tampia resource.
• The potential for the discovery of new gold targets over the next six months requiring follow up resource drilling is high, both within the immediate vicinity of the Tampia resource and within a 10 - 15km radius of the resource.
• Previous exploration of the 24 regional targets includes very limited drilling of 5 targets, 2 with significant gold intercepts. • Up to 100 drill holes totalling approximately 5000m have been budgeted for this initial exploration phase.
• All regional gravity targets have been selected and modelled on the basis of similarities with the known Tampia resource of 695,000oz gold, and are interpreted to be near surface.
• The program will initially comprise grid auger soil sampling of all targets to locate gold geochemical anomalies that warrant follow up reverse circulation drill testing over the summer period to determine potential and prioritisation for follow up resource drilling.
• Results from the soil sampling are expected to start being received by mid-November and drilling is expected to start in November.
Explaurum Limited (EXU:ASX) (“Explaurum“ or the “Company”) is pleased to announce that it has commenced regional exploration around the Company’s Tampia Gold Project in Western Australia. This is the start of an intensive phase of exploration that has been planned to be completed during the period between the end of harvesting in November to the start of seeding in May next year.
The exploration will aim to add new resources, both from around the immediate Tampia Gold resource area and regionally, to the recently announced resource of 11,318,000 tonnes at 1.91 g/t Au for 695,500 ounces of gold at a 0.5 g/t Au cut off at the Tampia Gold project. The main aims of the planned exploration are:
• To expand the resource base at the Tampia Gold project to add potential mine life to the project.
• To test and infill extensions to the current resource down plunge to the south east.
• Map the geology and test for additional stacked shoots of gold mineralisation directly underneath the current resource area.
• To map the geology and geochemistry of all the gravity targets in the regional area (Figure 1).
• To drill test the regional gravity targets that have gold soil anomalies for bed rock gold mineralisation.
• Prioritize targets that warrant follow up resource drilling programs
QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2017
• All assay results have now been received for the 2017 Tampia resource drilling program, which consisted of a total 287 RC holes (36,339m).
The latest holes drilled in the Wanjalonar gold zone continued to intersect wide high grade zones of gold mineralisation between the surface and a depth of 130m. Gold mineralisation remains open down dip to the south east, with results including:
THRC367 3m at 8.62 g/t Au from 51m,
THRC376 19m at 2.33 g/t Au from 15m,
THRC376 8m at 6.67 g/t Au from 41m,
THRC378 20m at 2.29 g/t Au from 49m,
THRC380 13m at 3.13 g/t Au from 78m,
THRC382 5m at 4.72 g/t Au from 81m,
THRC382 15m at 1.20 g/t Au from 107m,
THRC388 4m at 3.64 g/t Au from 8m,
THRC392 10m at 3.90 g/t Au from 15m,
THRC394 2m at 10.60 g/t Au from 131m
The results from the Merino gold zone are from variography holes that confirm the statistical continuity of gold mineralisation
THRC169 6m at 4.17 g/t Au from 77m,
THRC359 2m at 6.19 g/t Au from 53m,
THRC368 13m at 3.42 g/t Au from 88m
The latest holes drilled in the Leicester gold zone continued to intersect high grade mineralisation from the near surface to a depth of 69m, confirming grade continuity and extending the mineralisation to the south.
High grade gold mineralisation remains open to the south and south east at depth. Intersections include:
THRC361 7m at 2.32 g/t Au from 71m,
THRC381 1m at 18.70 g/t Au from 6m,
THRC383 12m at 1.78 g/t Au from 12m,
THRC385 4m at 2.46 g/t Au from 31m,
THRC398 6m at 2.80 g/t Au from 30m,
THRC398 2m at 4.59 g/t Au from 42m,
THRC400 2m at 5.10 g/t Au from 11m
The new JORC Code (2012) Mineral Resource estimate for the Tampia Gold Project is 11.3 million tonnes at 1.91 g/t Au for 695,500 ounces of gold (0.5 g/t Au cut off), more than double the previous 310,000oz estimate.
• New Mineral Resource estimate has exceeded expectations and the target assumed by the 2016 Scoping Study as required to enable development of a viable standalone single open-pit mining operation.
• 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.