GOLDEN CROSS RESOURCES LTD 2002-05-16 ASX-SIGNAL-G
HOMEX - Sydney
+++++++++++++++++++++++++ ADELONG GOLD PROJECT FEASIBILITY STUDY RESULTS
GCR is taking the first step towards re-opening Adelong, one of NSW' largest and highest-grade goldfields.
GCR commissioned Keith Goode of Eagle Research Advisory Pty Ltd to visit the Adelong Gold Project and review the recently-completed feasibility study. Keith Goode's report is attached for the information of shareholders.
The feasibility study focussed on the Challenger Zone, the Challenger Extended Zone and outlying mullock dumps. It is proposed that the Challenger Zone be mined by underground methods, the Challenger Extended Zone by open-cut methods and the mullock dumps be upgraded through screening prior to processing.
The resource at the Challenger and Challenger Extended Zones has been upgraded to 307,400t at 4.9 g/t, containing 48,000 oz of gold (215,400t at 4.9 g/t indicated and 92,000t at 5.0 g/t inferred). The mullock dumps inferred resource is 110,000t at 1.6 g/t gold. The total resource is 417,400t at 4.0 g/t, containing 54,000 oz of gold.
The feasibility study is based on mining 23,500 tonnes per month over 14 months at an average grade of 4.2 g/t, producing 42,000 oz of gold at an average cash operating cost of about $365/oz average cash operating cost of about $365/oz (US$200/oz at 1A$ = US$0.55) over the currently defined mine life. Drilling has shown that mineralisation extends below the base of the current mine plan. Processing involves a standard CIL plant with expected recoveries of 95%.
At current gold prices the feasibility study revealed a payback of the $3.25 million capital cost in about 7 months.
Enquiries: David Timms, MANAGING DIRECTOR, Ph (02) 9482 8833
This report was prepared by David Timms, Managing Director and full time employeeof Golden Cross Resources Ltd, who is a Fellow of the AIG and AusIMM and has more than five years experience in the field of activity in which he is reporting.
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