Potential game-changer for Egan Street
12th January 2018
Resources Rising Stars
Gold hopeful Egan Street Resources says initial results of ore-sorting testwork highlight the potential to enhance its Rothsay gold project in Western Australia (MiningNews reports).
Results from testwork on low-grade ore from the project returned overall gold recovery of 97.2% and an increase to the mill feed grade of 1.5 times the stockpiled grade, while 33% of the mass was rejected at 0.2 grams per tonne gold.
The company said the work was extremely effective at rejecting the hangingwall dilution that will be incurred during mining of the Woodley’s Shear, the main ore-hosting structure.
In the May 2017 prefeasibility study, dilution averaged 43%, the bulk of which came from the ultramafic hangingwall.
The ore-sorter has the potential to eliminate the dilution and boost underground mining rates by up to 34% without the need to increase the proposed size of the plant.
Egan Street Resources managing director Marc Ducler said the results were early stage, but could be a potential game-changer.
“Given that Rothsay is relatively narrow but high-grade mine, the ability to significantly reduce the substantial amount of planned mine dilution already built into our mine design and financial model through the use of a Steinert multi-sensor ore-sorter is an exciting and very positive development,” he said.
“We are confident that follow-up testing to be undertaken this quarter will confirm a pathway to significantly enhance and optimise our development plan, adding considerable value to the project and representing an important new input to the definitive feasibility study to be finalised next quarter.
“Technological advances such as this are increasingly being adopted across the gold mining industry in Western Australia and are a great example of how innovation can contribute to improved productivity and enhanced financial outcomes for new mine developments such as Rothsay.”
Last year’s PFS suggested capital costs of A$33.9 million for a 5.5-year operation to produce 211,000oz of gold grading 7gpt for all-in sustaining costs of $1020 an ounce.
Drilling is set to resume at Rothsay this week. The project already has a high-grade resource of 880,000 tonnes at 10.9gpt gold for 307,000 ounces of gold, using a 5gpt cut-off.
“We are confident that 2018 will be a breakthrough year for Egan Street, with the company set to make the transition from explorer to developer in the second half of the year and become a new high-grade Australian gold miner in 2019,” Ducler said.
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