Ark Mines (ASX: AHK) has made its intentions clear that the Frances Creek Gold Project in the Northern Territory is a gold deposit the company plans to mine, with two toll treatment options already under consideration.
The company added the project to its portfolio earlier this year following the securing of an agreement with Arafura Resources (ASX: ARU) to mine, farm into and become a joint venture partner in Arafura’s Mt Porter and Frances Creek gold projects.
Ark is currently progressing enquiries regarding toll treatment options for Frances Creek, which will be a key focus for the company in 2013.
Frances Creek is close to Mt Porter’s 34,000 ounce gold Resource and the exploration upside is evident with over 2,400 metres of mineralised reefs and only 390 metres drilled to date.
Arafura previously drilled 1,646 metres across 40 holes on the Frances Creek Project in 2006, identifying gold grades of up to 47.5 grams per tonne over intervals of up to 5 metres at the Golden Slips and Golden Honcho prospects.
Studies are currently underway on historical data and geological information from both prospects.
Previous drilling revealed medium to high grade quartz veins outcropping on steep ridge crests, which could potentially be exploited by simple, low cost open pit mining.
The results show similar grades and widths to surface sampling, with average grades of 17.6g/t gold over 420 metres at Golden Honcho and 18.2g/t over 180 metres at Golden Slips.
Ark will undertake an infill drilling program to build on previous work done at the project, with the program set to begin once further field work has been completed.
The company is also planning to complete a small infill drilling program on the Mt Porter Project to expand the existing Resource and provide greater certainty to begin small scale production.
Mt Porter – a shallow deposit conducive to open cut mining and located proximal to working gold mills – has already been granted a mining lease.
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