Apex Minerals (ASX: AXM) has increased the total mineral resources at its Wiluna gold mine in Western Australia by 83,000 ounces to 1.6 million ounces of gold following its annual resource estimation.
The revised mineral resource totals 8.03 million tonnes at 6.6 g/t for 1.6 million ounces of gold. This represents an 8% increase in grade and a 5% increase in contained gold compared with the previous mineral resource estimate undertaken in October 2008, using the same estimation criteria.
Importantly, the indicated resource has effectively remained unchanged at 763,000 ounces, and the average grade has increased by 6% to 6.9 g/t gold.
This is despite mining depletion of 90,000 ounces (600,000 tonnes at 4.7g/t) since October 2008, being 198,000 tonnes at 5.7g/t for 36,000 ounces gold mined from Calais and 402,000 tonnes at 4.1g/t for 54,000 ounces gold mined from East Pit.
Apex managing director Mark Ashley said the results highlight the potential to increase the resources at Wiluna.
“The additional funds from the rights issue will enable Apex to undertake substantial mine development which will in turn underpin a steady rise in production and an increase in cashflow,” he said.
The improved financial position after the rights issue to raise $108.6 million will give the company significant scope to undertake the drilling needed to grow the resource base and upgrade the existing resources, Mr Ashley said.
The increase in mineral resources was achieved with limited drilling at Wiluna, which attests to the endowment and prospectivity of the gold field.
Apex will now commence a re-estimation of its ore reserves using the new mineral resource model. The updated ore reserve estimate is expected to be completed during November.
Apex has identified a strategic opportunity for a regional consolidation in the Eastern Goldfields of Western Australia focusing on high grade refractory gold deposits. Many of the discovered deposits had fragmented ownership and were lacking the critical mass for efficient operation. Apex has addressed this by creating a central processing facility, fed by several consolidated high grade deposits.