MOD takes bigger stake of Sams Creek
PERTH (miningweekly.com) – ASX-listed junior MOD Resources has increased it shareholding in the Sams Creek gold project, in New Zealand, to 80%.
MOD’s stake in the project rose by 20% after it spent NZ$6-million on the project, in line with its joint venture (JV) obligations.
MD Julian Hanna said recent developments at the Sams Creek project, where remodelling of the resource identified potentially higher-grade mineralisation, had the potential to add value to what was already a significant gold deposit.
“The increase in the JV interest has coincided with the realisation of the potential for higher-grade gold mineralisation occurring within the existing one-million-ounce resource, which remains open beyond the current limit of drilling.”
Hanna said MOD had shifted away from earlier concepts, evaluating possible lower-grade openpit mining at Sams Creek to consider the potential that could exist for an underground mine.
“This has required a fresh look at the project, including a review of the extent of the higher-grade mineralisation. Initial results appear to be encouraging and we await the outcome of the resource remodelling, which will be conducted to Joint Ore Reserves Committee code compliance standards.”
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