Resource and Investment NL (ASX: RNI) has discovered some broad zones of gold mineralisation at the company's Grosvenor project in Western Australia, with the drilling targeting an expanded resource and reserve, to support the recommencement of mining and gold production.
The company is considering bulk mining options for dump leach and heap leach processing options as additions and/or replacements to conventional CIL processing options, with the target costs of less than A$1000 per ounce.
Resource and Investment wholly-owns the existing 1Mtpa nameplate Grosvenor gold plant.
If production costs could be kept below this level, then the company would be able to make a significant margin, even with the recent pull-back in the price of the yellow metal.
A highlight from the latest reverse circulation drilling includes; 49 metres at 1.2g/t gold from 111 metres, and with the wide zones of oxide mineralisation extend to depths of >150 metres below surface, the results have the potential to result in a new resource.
Drilling is being conducted along the strike of the Callies open pit where an existing gold resource of 950,000 tonnes at 1.5g/t gold has been defined.
Broad oxide and transitional mineralisation
The reverse circulation drilling program has covered an extensive 57 holes for around 8400 metres, targeting a defined zone of broad oxide and transitional mineralisation immediately north and down dip of the previously mined Callies open pit.
Final assays are still pending from the current drilling program will be included in an updated resource for delivery in the September quarter 2013, with the gold mineralised zone remaining open along strike and at depth.
This resource would incorporate both the existing North Callies Resource and the existing
South Callies open pit.
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