Golden Rim Resources Ltd (ASX:GMR) has unveiled its maiden mineral resource estimate (MRE) for Kada Gold Project in Guinea, delivering an inferred resource of 25.5 million tonnes at 1.1 g/t gold for 930,000 million ounces.
The maiden resource for Kada lies within the Massan Prospect and has been prepared by independent consultants, RPM Advisory Services Pty Ltd.
Notably, RPM has estimated the MRE based on results of 23 diamond drill holes for 7,016 metres and 80 reverse circulation (RC) holes for 11,216 metres drilled by Golden Rim and Newmont between 2009 and January 2022 over a strike length of 1 kilometre.
Moving forward, GMR is planning a 10,000-metre drill program commencing in March/April to target oxide resource expansion along the Kada Gold Corridor and high-grade depth extensions in the MRE area.
“Major milestone”
GMR managing director Craig Mackay said: “The maiden mineral resource estimate at Kada is a major milestone for Golden Rim and comes approximately 12 months after acquiring the project and commencing work which reflects the extraordinary effort from our personnel and, in particular, our strong exploration team.
"Achieving 930,000 ounces of gold in the Kada maiden MRE is just the start. Our focus over the coming year will be resource growth.
"We will chase more oxide ounces along the highly prospective 15-kilometre Kada Gold Corridor by testing several priority target areas. We will also test for extensions to high-grade zones in the MRE beneath the current pit shell. Drilling of these areas is expected to commence shortly.”
MRE summary
The Kada MRE is reported within an optimised pit shell based on a US$1,900 per ounce gold price and is reported with lower cut-off grades of 0.33 g/t gold for oxide-transitional material and 0.41g/t gold for fresh material, based on US$1,764 per ounce gold price.
Notably, the MRE has recorded a low discovery cost of US$8 per ounce including acquisition costs:
Kada MRE exhibits attractive development attributes including:
- Majority (72%) of MRE comprised of shallow oxide-transitional gold;
- Oxide-transitional material is typically higher-grade, soft, and extends ~100 metres depth;
- Gold mineralisation sits in broad mineable zones, extending from surface;
- Strong indications for significant free-digging, low-stripping, open-pit mining; and
- Favourable metallurgical recoveries suggested in historical Newmont test-work.
Maiden Kada mineral resource estimate.
Upside potential
GMR has identified mineral resource upside potential at Kada.
Within the MRE area at Massan Prospect, most of the multiple, parallel zones of gold mineralisation are open at depth and extend beneath the bottom of the constraining pit shell.
New broad oxide mineralisation of 66 metres at 1.0 g/t gold was discovered in drilling 400 metres north of the MRE area and remains open at depth, along strike.
Also, GMR is planning follow-up drilling beneath highly significant new intersections such as 96 metres at 3.3 g/t gold from 28 metres, including 29 metres at 8.5 g/t in KRC025 within the MRE area.
The MRE area only covers 7% of the highly prospective 15-kilometre Kada Gold Corridor and targets include strong bedrock gold anomalies and stockwork vein mineralisation grading up to 171.5 g/t gold.
Forward plan
GMR’s primary objective at Kada over the remainder of 2022 is to further grow the resource.
The company is planning a 10,000-metre drill program commencing in March/April to target oxide resource expansion along the Kada Gold Corridor and high-grade depth extensions in the MRE area.
Subsequently, drilling will then move to test the five target areas identified along the Kada Gold Corridor and the Sinin Prospect target in the parallel corridor 1.2 kilometres to the east.
Further, another round of diamond drilling (1,500 to 2,000 metres) is planned within the MRE area, initially to test for depth extension to areas of high-grade gold mineralisation beneath the current pit shell.
The next round of RC and diamond drilling will also include some infill drilling in higher-grade portions of the MRE to convert inferred to indicated resources
An infill auger drilling program is planned for the eastern portion of the Kada permit and the 2-kilometre gap in auger drilling within the Bamfele permit.
Representative samples of drill core (660 kilograms) from Kada are undergoing metallurgical test-work by ALS Laboratories in Perth, Western Australia.
This work is progressing well and the results are expected later this month.