The Company is working towards converting as much of the current 872,000 ounce gold resource base to reserves, while continuing to explore the highly prospective project area for new discoveries.
Nerrin Nerrin Resource Extension Drilling The Nerrin Nerrin prospect is located 3km south of the Zoroastrian deposit and hosts a Mineral Resource of 181,000t at 2.38g/t Au for 13,800oz Au. The gold mineralisation at Nerrin Nerrin is contained within the Zoroastrian dolerite and is interpreted as being of a similar style to that found at Zoroastrian. Knowledge gained from the mining of Zoroastrian Central open pit has been applied to the geological model at Nerrin Nerrin, with the recently completed drilling program successfully extending the gold mineralisation northwards beyond the conceptual open pit shell, with the significant widths and grades encountered warranting follow-up work.
Of particular importance is hole KNC170016, which intersected 16m at 2.6g/t Au and confirmed that the mineralisation is similar to that found in the Royal Mint Lode at Zoroastrian. The line of RC holes drilled 200m north of the Nerrin Nerrin conceptual pit intersected 5m at 2.34g/t Au from 50m in hole KNC170009 within a 10m wide zone of anomalous gold mineralisation (10m at 1.52g/t Au). This intersection confirms that mineralisation at Nerrin Nerrin is more extensive than previously interpreted. Follow-up drilling will be planned and scheduled into the Nerrin Nerrin program as priorities dictate.
Planned Exploration Drilling The diamond core drill hole at Thompsons, located immediately north of Zoroastrian , was completed to 463m. The core is currently being logged and cut for assaying including ASD and pXRF analysis on selected intervals. This work will take a further 6 to 10 weeks. The next target is the Pleasure Bound dolerite, with the drill program scheduled to commence in late September.
This parallel dolerite unit is located some 250m west of the Zoroastrian host sequence. An historical RC drill hole intercept of 4m at 43g/t Au from 18m down hole highlights the potential of this largely unexplored dolerite unit. Mining and Processing All stockpiled gold ore from the Zoroastrian Central open pit has now been trucked from the ROM pad to the Lakewood toll treatment facility. Processing of the ore and subsequent sale of gold will continue into early October 2017.
