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KalNorth looks at underground options for Lindsay's

16th April 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed junior KalNorth Gold Mines is conducting a study on the viability of underground gold mining at its Lindsay’s project, in Western Australia.

The miner said on Tuesday that it was exploring plans to develop an underground mine at Lindsay’s after the exhaustion of current openpit operations. It was envisaged that an underground operation would extend the life-of-mine at the operation.

Lindsay’s project currently hosts an indicated and inferred resource of some 5.14-million tons, grading 2 g/t gold for 323 600 oz of contained ounces. Some 40 000 oz of gold would be extracted through openpit mining.

“Underground operations, delivering substantially higher-grade ore, will significantly extend the mine life at Lindsay’s,” said MD John McKinstry.

He noted that while the openpit operations provided a rapid cash flow, there was a strong future for sustained underground operations, not only at Lindsay’s but also at other KalNorth deposits.

Current work was based on a limited amount of deeper drilling undertaken at Lindsay’s to date. The work would consider only the indicated and inferred resource directly beneath the Parrot Feathers openpit.

McKinstry noted that several deep holes had confirmed the strong continuity of the mineralised system, but added that additional drilling was required to define the resource that was suitable in grade and width for extraction by underground methods.

Edited by Creamer Media Reporter

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