Meteoric Resources NL (ASX:MEI) has established a maiden resource of 5.6 million tonnes at 2 g/t for 357,000 ounces at Palm Springs Gold Project in Western Australia within a year of acquiring the project.
The company said an ‘outstanding’ initial exploration season combined with the discovery of a treasure trove of original exploration and mining data had allowed for an accelerated resource statement.
Delivered well ahead of schedule, the global resource estimate is from two deposits –
- Butchers Creek with indicated resources of 1.9 million tonnes at 2.24 g/t for 139,000 ounces and inferred resources of 3.3 million tonnes at 1.7 g/t for 180,000 ounces; and
- Golden Crown with inferred resources of 390,000 tonnes at 3.1 g/t for 38,000 ounces.
This means around 40% of the estimate is reported in the higher confidence indicated category, reducing planned exploration and development timelines.
“Most significant event for shareholders”
Managing director Andrew Tunks said: “This is the single most significant event for shareholders since I have been at the helm of Meteoric, accelerating our development timetable by 12 months and opening a range of exciting options to progress the Palm Springs Gold Project that had not previously been on the table.
“Our ability to complete a successful exploration season at Palm Springs within months of acquiring the project contributed heavily to this maiden resource and these efforts have paid huge dividends.
“Particularly pleasing is the confidence established in the historic drilling, allowing the classification of significant indicated resources at Butchers Creek based on the quality of the original data, close drill spacing, comparable and supporting results in 2020 drilling, comparisons with historic production, and the successful extension of mineralisation to the south.
“Ultimately this has resulted in a fabulous set of resource numbers.”
Investors have also welcomed the result with shares 5.46% higher at 5.8 cents.
Paves way for further resource upgrade
Two drill rigs are operating at Butchers Creek with the aim of increasing the size of the resource and converting additional ounces into the indicated category
A large portion of the indicated resource at Butchers Creek occurs in the floor and beneath the historic pit, providing immediate ore for future development
The Butchers Creek resource largely sits within granted Mining Leases, potentially cutting approval times for development.
Tunks continued: “It is equally important to recognise the implications of achieving indicates resource status for 40% of the mineral resource estimate.
“This will significantly reduce our planned exploration and development timelines.
“We have ceased pumping out the Butchers Creek Open Pit as there is no longer any need to validate the historic drilling prior to initiating economic and pre-feasibility studies.
“In addition, the current 3,800-metre drill program is planned to both extend and increase confidence in the mineralisation at Butchers Creek, paving the way for a further resource upgrade at the end of the current drill program.”