AuKing Mining Ltd has delivered a detailed update on the planned drilling program at the Cloncurry Gold Project in northern Queensland, which supports a broader strategy to restart gold mining operations at the Mt Freda deposit.
Recent deal provides momentum
The recent deal between AuKing and Orion Resources Pty Ltd, which allows for AuKing to acquire up to a 50% interest in Orion, gives the company the momentum to design a detailed drilling program at Mt Freda.
AuKing managing director Paul Williams said: “There is little doubt that Mt Freda provides an integral basis for the proposed re-commencement of mining operations at the Cloncurry Gold Project.
“We have taken the time in recent weeks to consider the key features of the proposed Mt Freda drilling program, with a view to that work commencing as soon as possible after Orion completes the acquisition of these assets.
“The wide range of results and data to flow from that drilling program will be exciting to follow.”
Exploring gold extensions
The proposed campaign, to be executed by Orion, includes up to 10,000 metres of diamond and reverse circulation drilling focused on enhancing resource confidence, testing metallurgical recoveries and exploring further gold extensions.
AuKing retains the right to acquire a 50% interest in Orion by investing A$5 million by 30 June 2027.
Drilling will underpin a revised mineral resource estimate and assess the extent of coarse gold within the ore body – key to determining optimal processing pathways.
Notably, testing will evaluate whether to use existing VAT leach facilities at Mt Freda or instead transport ore to the carbon-in-leach (CIL) plant at Lorena for higher recovery rates.
AuKing and Orion also plan to test deeper mineralisation and potential extensions along the east-west strike of the Mt Freda open pit, which lies within a major fault zone with high-grade gold potential.
In addition to Mt Freda, selected drilling will target nearby high-priority prospects including Mt Scheelite and Little Duke, which may provide early-stage cashflow to support development costs.
Mt Freda, a past producer of 30,000 ounces per annum from 1987 to 1991 at an average grade of 4 grams per tonne, is central to Orion’s strategy to revive gold production in the region.
A finalised drilling plan is expected to commence upon Orion's completion of asset acquisition.