PERTH (miningweekly.com) – Takeover target Explaurum has reported a maiden inferred mineral resource of 400 00 t, grading 1.4 g/t gold for 20 000 oz of contained gold at its Mace deposit, in Western Australia.
MD John Lawton told shareholders on Friday that at a headline level, the initial mineral resource estimate had returned ‘frustrating results’.
The Mace deposit extends from the southwestern margin of the proposed Tampia openpit operation, and is 40m to 80m wide, with an average thickness of 5m from around 8m below surface.
The initial mineral resource estimate was based on 310 reverse circulation drill holes on a 20m by 10m drill spacing, as well as 25 diamond drill holes, which covers 700m of the strike extent of the Mace deposit.
Lawton said that coarse gold distribution and challenged drill sample quality had limited the ability of the initial mineral resource to be classified at a higher level of resource confidence.
“However, the finer detail behind [the mineral resource estimate] presents a different story. The infill reverse circulation programme was undertaken on a close spaced drill pattern, with many high-grade intercepts being returned.
“However challenging sample quality, as a result of the gold mineralisation being coarse or nugget, and being hosted by unconsolidated clay, has had the effect of significantly negatively biasing the final grade estimate for the resource.”
Lawton said that subject to shareholders approving a strategic investment by fellow-listed Alkane Resources, Explaurum would aggressively accelerate extensional drilling at Mace in early 2019.
Explaurum this week urged shareholders to reject a takeover offer from gold miner Ramelius Resources, in favour of an A$8-million investment from Alkane, which would give that company a 12.2% strategic stake in Explaurum.