Laneway pursues second phase of mining at Agate Creek
About 70,000 tonnes of ore from the Sherwood and Sherwood West gold prospects within that project was processed through the Blackjack plant at an average grade of 7.3 g/t between April and September this year.
Laneway Resources had an agreement with plant owner Maroon Gold, which saw Maroon undertake and meet the costs of the mining, transportation and processing the ore.
In its latest quarterly report, Laneway said it made more than $10.5 million in gold sales from its 5424 oz share of the 15,816 oz produced in that time.
Now the company is targeting potential additional high-grade material near the existing open cut pit as well as exploring regional targets at the Agate Creek project, about 40km south of Forsayth.
Laneway said this week a recent 42-hole drilling program had confirmed the potential to undertake a small cut-back on the current open pit area to access high-grade mineralisation from deeper mining of the current pit floor, along with extensions into the walls.
“Initial analysis shows potential for additional tonnes to be mined in the near term by Laneway,” the company reported.
Full analysis of that potential will be undertaken following the completion of updated JORC resource calculations for the site.
Current limited modelling shows up to 20,000 tonnes of high grade ore in close vicinity to the current open cut, however Laneway says the volumes of waste to be removed as part of any cut back and costs associated with this have not yet been fully modelled.
“The long-term aim for the Agate Creek mine is for conventional on-site processing of the larger commercial grade resource that has been defined at Agate Creek,” the company said.
“However, while the gold price is at record AUD levels additional potential toll treatment of high grade ore will be targeted shorter term to provide additional cash flow to fund significant further exploration for the company without further requirements for equity capital raisings.”
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