White Cliff Minerals Ltd.: Aucu Gold Deposit - Development Update
Perth - White Cliff Minerals Ltd. (ASX:WCN) ("White Cliff" or the "Company") is pleased to update the market on progress with the development of the Aucu gold deposit in Central Asia.Highlights:
- New JORC compliant resource estimate in progress - due March
- Duplicate assaying of high grade gold intersections underway at Bureau Veritas laboratory in Perth
- Ore density assays received - confirm similar density to maiden resource estimate
- Gold and copper metallurgical test work in progress at Bureau Veritas laboratory in Perth
- Consultant engaged to compile mining optimisation study parameters
- Exploration and drill planning underway for 2017 field season
2017 JORC Compliant Resource Estimate
The Company has recently engaged highly regarded mining consultants Optiro to complete a new JORC compliant resource estimate for the Aucu Gold Deposit. The Company expects the new estimate will add to the existing JORC compliant resource of 1.2Mt at 4.2 g/t containing 156,000 ounces of gold.
The existing resource starts at surface and has superb metallurgical characteristics (88.6% of the gold reports to the gravity concentrate and total recoverable gold is 99% via cyanide extraction). The current resource is also amenable to open pit mining.
The new resource estimate will incorporate the high grade gold mineralisation identified at the Quartz Zone in 2016. Mineralisation starts at surface, extends over 300 metres long and down to 120 metres depth. The Quartz Zone contains substantial visible gold, both in outcrop at surface and in drill holes at depth. Gold Mineralisation is still open in both directions and at depth and the Company expects further drilling in 2017 to substantially expand the Quartz Zone.
The Company has submitted all mineralised intervals (365 samples) from the 2016 drilling program to the Bureau Veritas Perth laboratory for gold, copper and base metal assays. This analysis forms part of the standard quality assurance protocols associated with conducting JORC compliant resource estimations.
In addition, the Company has received bulk density results from drill hole ore samples (core and RC chips) that confirm the density used in the initial resource estimate. The density results are essential to enable inferred resources to be upgraded to indicated resources in future resource estimates.
The new resource estimate is expected to be completed and announced in March 2017.
Metallurgical Test Work
In conjunction with the resource estimate the Company is also conducting a substantial gold and copper metallurgical test work program to better outline potential processing options for the deposit. Provided the metallurgical test work produces the high gravity gold recoveries (88.8% gravity recoverable and 99% total recoverable gold) encountered in previous studies the Company believes that a low cost simple gravity plant could allow the project to provide substantial cash flow within a short time frame.
Mining Optimisation Study
The Company is pleased to announce that experienced mining consultant Dr Evan Kirby has been retained to oversee the compilation of mining study parameters for the upcoming mining optimisation study. Initially Dr Kirby will assist with establishing the appropriate process scale based on the upcoming metallurgical costs followed by detailed costing for plant, infrastructure and operations.
Following the resource estimate a preliminary open pit mining optimisation study using the above mining parameters will be conducted to establish the baseline economics of the project, to form part of an application for a mining license and to assist with optimising future drill programs.
Exploration and Drilling Program - 2017
Exploration planning for 2017 is well advanced with the bulk of planned drilling focussing on extensions to the existing mineralisation. The Company has also planned several new tracks that will cut across the Lower Gold Zone (LGZ) south of the Quartz Zone where several outcropping quartz reefs have mineralised rock chip assay results. The Company will release a formal exploration update once planning is complete.
2016 Results Summary
Drill defined gold mineralisation has been identified along the Quartz Zone reef over a distance of 265 metres. Mineralised outcrop containing visible gold extends along the exposed quartz reef over a distance of 350 metres (see Figure 1 in the link below).
Aucu Gold Deposit Summary
As previously reported (ASX releases 24 Mar 15 and 02 Apr 15), the Company announced a maiden inferred resource for the Aucu gold deposit above a cut-off grade of 1 g/t gold of 1.15 Million tonnes grading 4.2 g/t gold for 156,000 ounces of contained gold.
In 2015, drilling identified exceptional gold mineralisation to the east of the Upper Gold Zone (UGZ) over a strike length of at least 500 metres. Results included:
- 8 metres at 55.2 g/t gold from 66 metres including 1 metre at 89.9 g/t gold
- 4 metres at 59.9 g/t gold from 66 metres including 1 metre at 189 g/t gold
- 2 metres at 43.5 g/t gold from 86 metres
- 1 metre at 103.4 g/t gold from 74 metres
- 3 metres at 41.4 g/t gold including 1 metre at 71 g/t gold
- 4 metres at 23.8 g/t gold from 85 metres
- 2 metres at 22 g/t gold from 102 metres
- 1 metre at 58 g/t gold
In 2016, drilling east of the Upper Gold Zone2 identified further substantial mineralisation over an additional 300 metres of strike length. Results included:
- 11 metres at 15.2 g/t gold from 42 metres including 1 metre at 149 g/t gold
- 12 metres at 15.6 g/t gold from 82 metres including 2 metres at 79 g/t gold
- 12 metres at 5.1 g/t gold from 34 metres including 2 metres at 26.2 g/t gold
- 5 metres at 9.9 g/t gold from 3 metres
- 9 metres at 8.3 g/t gold from 96 metres
- 4 metres at 12 g/t gold from 49 metres
- 3 metres at 11.2 g/t gold from 13 metres
- 3 metres at 11.9 g/t gold from 45 metres
- 5 metres at 7.6 g/t gold from 93 metres
- 3 metres at 9.8 g/t gold from 9 metres
Substantial copper intersections include:
- 66 metres at 0.91% copper from 33 metres including 18 metres at 1.85% copper
- 24 metre at 1.34% copper from 71 metres including 7 metres at 5.1% copper
- 19 metres at 0.74% copper from 22 metres including 2 metres at 2.4% copper
In addition:
- Mineralisation outcrops at surface over an elevation of at least 600 metres,
- Mineralisation remains open in all directions and at depth,
- Overall metallurgical recovery of all mineralised zones is 99%, and
- Gravity recoverable gold averages 88.6% (gold that reports to the gravity concentrate).
To view tables and figures, please visit:
http://abnnewswire.net/lnk/6PLU30Y5
About White Cliff Minerals Ltd:
White Cliff Minerals Ltd. (ASX:WCN) is a Western Australian based exploration company with the following main projects:
Kyrgyz Aucu Gold Project (90%): The Project contains extensive porphyry related gold and copper mineralisation starting at the surface and extending over several kilometres. Drilling during 2014 has defined a major gold discovery with an initial inferred resource of 1.15Mt at 4.2 g/t containing 156,000 ounces of gold. Additional drilling in 2015 identified extensions of known high grade gold mineralisation with intersections as high as 8 metres at 55 g/t gold. In addition drilling has also defined a significant copper deposit at surface consisting of 10Mt at 0.41% copper containing 40,000 tonnes of copper. Extensive mineralisation occurs around both deposits demonstrating significant potential to increase the existing resources.
The project is located in the Kyrgyz Republic, 350km west-southwest of the capital city of Bishkek and covers 83 square kilometres. The Chanach project is located in the western part of the Tien Shan Belt, a highly mineralised zone that extends for over 2,500 km, from western Uzbekistan, through Tajikistan, Kyrgyz Republic and southern Kazakhstan into western China.
Merolia Gold and Nickel Project (100%): The project consists of 771 square kilometres of the Merolia Greenstone belt and contains extensive ultramafic sequences including the Diorite Hill layered ultramafic complex, the Rotorua ultramafic complex, the Coglia ultramafic complex and a 51 kilometre long zone of extrusive ultramafic lava’s. The intrusive complexes are prospective for nickel-copper sulphide accumulations possibly with platinum group elements, and the extrusive ultramafic rocks are prospective for nickel sulphide and nickel-cobalt accumulations.
The project also contains extensive basalt sequences that are prospective for gold mineralisation including the Ironstone prospect where historical drilling has
Contact:
White Cliff Minerals Ltd.
Todd Hibberd Managing Director
T: +61-8-9321-2233
www.wcminerals.com.au
