Tyranna Resources Ltd’s (ASX:TYX) (FRA:IRN) Wilcherry Project Joint Venture partner Alliance Resources Limited (ASX:AGS) (FRA:A5P) has defined a high-grade maiden resource for the project 40km from Kimba township in South Australia.
The 1.097 million tonne resource at 5.1 g/t gold contains 181,000 ounces and consists of indicated and inferred resources at the 1,200 square kilometre project.
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Indicated resources make up 590,000 grading 4.6 gold for 88,000 while the inferred resources are 507,000 tonnes grading 5.7 g/t gold for 93,000 ounces.
The resources come from $2,000 pit shells grading more than 0.5 g/t gold and potential underground resources grading more than 2 g/t gold.
‘Readily accessible’ resource
Alliance, which holds 75.01% of the joint venture to Tyranna’s 24.99%, said 83% of the resource occurs within 120 metres of surface.
The partner reported the resource was “readily accessible using open pit or underground mining techniques”.
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Alliance managing director Steve Johnston said “the delivery of a maiden mineral resource is a significant milestone for the company and confirms Weednanna as a quality gold deposit with outstanding economic potential”.
“This is the first step towards establishing the Wilcherry project area as an emerging gold-producing district in South Australia.”
Interlocking investments
Alliance holds an 8.92% voting stake in Tyranna, with 71,393,843 voting shares, a stake reduced from the 17.91% voting power the company held before August 3.
The reduction in Alliance’s Tyranna voting stake came about after the company acquired the Eureka Gold Project 50 kilometres north of Kalgoorlie in Western Australia’s Goldfields.
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West Perth-based Tyranna paid for the project with 93.2 million shares, giving seller Central Iron Ore Ltd (CVE:CIO) an 11.6% stake in the company.
Tyranna hopes to bring the contract-mined Eureka project into production from existing workings in the near term.
The Eureka pit was extended by 20 metres earlier this year.