Gold explorer Focus Minerals (ASX: FML) is planning to upgrade its Coolgardie Gold Project Pre-feasibility Study (PFS) supported by a significant increase in the new JORC 2012 Minerals Resource for the Greenfields gold deposit.
A positive comprehensive review of Greenfields has led to an 81% increase in resources to a total of 2.66 million tonnes for 139,123 ounces at a grade of 1.62 g/t.
Greenfields is part of Focus’ Coolgardie Gold Project, which covers 175 sq. km of highly prospective tenements on the outskirts of the Coolgardie township in the Goldfields.
CEO, Zhaoya Wang, said Focus is currently updating the 2017 PFS with the new Greenfields resource model and a much more favourable gold price.
He said the company believes the updated PFS could pave the way for a return to mining at Coolgardie, which would add significant value for the company’s shareholders as well as generating funding for its flagship development opportunity, the 100%-owned Laverton Gold Project.
On behalf of the Board of Directors, I would like to commend the team for the diligent work in re- examining historical data of Greenfields. We look forward to what the new PFS could bring to Coolgardie,” Mr Wang said.
“At the same time, Focus is continuing its exploration efforts at our 100%-owned Laverton Gold Project. In line with our stated commitments, the Laverton PFS study will be completed by December 2020.”
“The Greenfields Ore Reserve in the 2017 PFS should not be relied upon as it was built on the previous resource model. The updated PFS will be completed in early August, which will provide the updated ore reserve numbers.”
The Greenfields Open Pit Gold Deposit is located 3.8km north-east of the Coolgardie township and 400m east of Focus’ Three Mile Hill processing plant.
Greenfields was mined by Focus for a short period in 2013. However, mining indicated major reconciliation variance between resource and mined/milled production. The resource was re-blocked to assist mining and an external consultant was engaged.
In July 2013, mining at Coolgardie – and therefore Greenfields – was suspended because of poor production performance and high costs.
The new model is supported by dense grade control drilling and has comprehensively delineated two orientations of mineralisation at Greenfields.