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A new gold mining campaign to start at Agate Creek this quarter will be exploiting almost twice as much high-grade ore as originally expected.

The Sherwood high-grade zone has been remodelled, incorporating results of a recent 34-hole (2068m) RC drilling program.

Project owner Laneway Resources says Whittle optimisation has yielded a Whittle shell containing 45,000 tonnes of high-grade gold material
grading 6.7 g/t gold – almost two times larger than expected pre-drilling.

Mining contractor, ore transportation and toll treatment agreements for third-party off-site processing are expected to be finalised once the mine planning is completed.

The mine is located about 40km south of Forsayth and 60km west of Kidston.

“We are naturally very pleased with the outcome of the drill program and the impact it has had on the size of the Sherwood high grade zone able to be mined this campaign, ” Laneway chairman Stephen Bizzell said.

“The Whittle pit optimisation has yielded a pit shell two times larger than we had previously expected and we are moving to produce gold from this area in the very near term.

“With the current high Australian dollar gold prices, we expect very healthy cash generation from this mining campaign to support the self-funded ongoing exploitation of the Agate Creek project.”

Beyond the current campaign, the Whittle pit optimisation process has also generated a much larger open pit shell containing 120,000 tonnes of
high-grade material at 5.7 g/t Au for 22,000oz gold.

Laneway says mining this larger pit shell will require amendments to the current Environmental Authority associated with its mining lease.

Additional environmental studies are underway to allow it to gain the necessary approvals.

The company’s long-term aim for the Agate Creek mine is for conventional on-site processing of the larger commercial grade mineral resource of 471,000oz of gold that has been defined at Agate Creek.