OzAurum Resources Ltd (ASX:OZM) is weighing the development potential of its Mulgabbie North Gold Project in a comprehensive scoping study.
In essence, the study will investigate a staged heap leach processing option at the West Aussie gold camp, with mining consultancy Burnt Shirt tapped to facilitate the program.
Mulgabbie North’s maiden mineral resource estimate (MRE) — slated for completion in Q2 2023 — will underpin the study, charting the course for future development options.
OzAurum already holds a mining lease for Mulgabbie North and has established access to key infrastructure like roads, water bore sites and key pipelines.
“Another major milestone”
OzAurum CEO and managing director Andrew Pumphrey said: “The commencement of the Mulgabbie North Heap Leach Project scoping study is another major milestone for the company.
“Work already completed will feed into the scoping study along with our maiden mineral resource estimate.
“With a granted mining lease at Mulgabbie North on part of the project and granted miscellaneous licences in place, with a staged approach we will examine the potential standalone heap leach treatment/development pathway.”
Honing in on Demag Zone
OzAurum’s interest in Mulgabbie North revolves around the Demag Zone — a virgin gold discovery with limited historical drilling.
In the past, aircore work has delineated a thick blanket of high-grade, supergene gold across the zone, turning up hits like:
- 4 metres at 1.47 g/t gold from 40 metres;
- 4 metres at 1.25 g/t from 56 metres;
- 4 metres at 2.00 g/t from 44 metres;
- 4 metres at 1.21 g/t from 40 metres; and
- 17 metres at 0.80 g/t from 56 metres, including 1-metre at 1.52 g/t at end of hole and 4 metres at 1.61 g/t.
More recently, reverse circulation drilling defined primary gold mineralisation across more than 2.8 kilometres of strike and OzAurum believes it can extend that distance with further exploration.
Next on the agenda
OzAurum plans to hit the ground running with a diamond drill program in the coming weeks, paving the way for resource estimation and heap leach test work.
CEO and managing director Andrew Pumphrey has provided the drilling equipment at no extra cost, meaning the company only needs to cover operating expenses.
The explorer will update the market on its exploration, drilling and scoping study endeavours as more information comes to hand.