PERTH (miningweekly.com) – Junior developer GME Resources is expected to start trial mining operations at its Devon gold mine in Western Australia, by the first week of May.
The ASX-listed company said on Friday that trial mining was expected to deliver between 15 000 t and 18 000 t of high-grade oxide material and transitional ore over a period of six weeks.
GME was currently finalising arrangements with the operators of a nearby plant to take advantage of a processing window later in May, and processing of the ore was expected to be completed by early June.
GME MD Jamie Sullivan noted that the company was currently reviewing a standby funding facility that would cover the working capital requirements for the trial mine, but given the short-term nature of the operation, the extent of the draw-down was expected to be minimal.
Meanwhile, environmental permitting work and planning had started on an expansion of the mine, to further develop the southern lode. Drilling results below the trial pit design had demonstrated that high-grade mineralisation continued to at least 40 m below the surface and indicated that there was strong potential to unlock significant value through a larger development.
In addition to the southern lode, the main lode of the north also displayed the same geology, and had recorded a number of high tenor gold grades which required follow-up drilling.
Information gathered in the trial mining stage would provide GME with information relating to the ultimate development for the balance of the deposit, while funds generated from the trial mine would be directed, in part, to further exploration and permitting to maximise the project value.