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Nullagine gets greater reserves

4th February 2019

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Gold junior Millennium Minerals has increased the ore reserve at its Nullagine project, in Western Australia, by 70%.

The ASX-listed company told shareholders on Monday that successful exploration and growth programmes had added some 150 000 oz to the reserve base, which now stood at 7.1-million tonnes, grading 1.6 g/t gold for 375 300 oz.

Millennium noted that the ore reserve increase delivered mine-life visibility of nearly four years, based on the company’s current production rate of some 100 000 z/y, which Millennium has maintained since September last year.

For the 2019 calendar year, Millennium is targeting production of between 90 000 oz and 100 000 oz.

CEO Peter Cash said on Monday that the company’s exploration and growth strategies were successfully driving mine life growth at Nullagine.

“We are on a strong upward trajectory at Nullagine, with our ongoing growth initiative enabling us to achieve our targeted 100 000 oz/y production rate in September last year, and with today’s ore reserve update, delivering a mine life approaching four years.”

The updated ore reserve included a maiden ore reserve estimate for the Golden Gate underground of 220 000 t, at 3.8 g/t gold for 27 100 oz.

“This puts us on track to develop our second underground mine at Nullagine at the Golden Gate mining center later this year and potentially opens up further significant parts of our mineral resource inventory for conversion to ore reserves,” said Cash.

“The ability to cost-effectively process all ore types at Nullagine has also dramatically expanded our exploration scope into under-explored areas which have been virtually untouched in years, an exciting prospect for our exploration team.”

Cash said that the company remained committed to continuing to grow the mine life at Nullagine beyond five years, and has a multi-pronged exploration programme under way.

Edited by Creamer Media Reporter

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