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Empire Resources' shares rally on open-pit potential at the Penny’s Find gold mine

Published: 00:42 27 Dec 2017 GMT

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The company is processing ore at the Lakewood Mill

Empire Resources Ltd's (ASX:ERL) shares have jumped 29.4% in morning trade to $0.022 following the latest drilling results from the Penny’s Find gold mine, located 50 kilometres from Kalgoorlie in Western Australia.

Mining is currently at 55 metres depth, with drilling designed to provide grade control information from 60 metres to the planned 85 metre bottom of the Penny’s Find open-pit.

Highlights from the lower part of the planned open pit include:

- 9 metres at 20.60g/t gold from 12 metres;
- 7 metres at 12.50g/t gold from 20 metres; and
- 7 metres at 12.14g/t gold from 30 metres.

David Sargeant, managing director, commented:

"As expected, the open-pit mining operation is now accessing the higher grade part of the ore body.

"We are looking forward in the next couple of months to solid gold production through the Lakewood toll treatment facility at Kalgoorlie.

"These results also bode well for the completion of our underground feasibility study as they indicate grades in the fresh part of the ore body are robust at depth."

Empire holds a 60% direct interest in the Penny’s Find gold project with the remaining 40% interest held by unlisted Brimstone Resources Ltd.

Ore processing

A new Penny’s Find gold ore treatment campaign is currently underway at the Lakewood Mill which has, to 30 November 2017, processed 21,194 dry tonnes of ore at 3.60g/t gold to recover 2,289 ounces of gold.

This current campaign allocation by Lakewood Mill was for the treatment of 25,000 tonnes of ore, and has been increased to allow for the treatment of up to 36,000 tonnes of ore.

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