REZ will convey the Granny Venn mine again to life in late June having now been given the go forward by the Western Australian authorities.
Resources & Energy Group (ASX:REZ) has locked in approval to restart mining on the Granny Venn gold mine in Western Australia.
“The resumption of operations represents the primary important mining exercise to take place within the East Menzies Goldfield since 1998,” government director Richard Poole stated.
“It is a important milestone for REZ as we proceed to show up the potential of our giant landholding at East Menzies to turn into a tier one mining operation.
“Granny Venn will present REZ with early money movement to help ongoing exploration on our different extremely potential prospects, which incorporates the possibly very giant Gigante Grande.”
The information pushed shares up almost 17 per cent to an intra-day excessive of three.5c on Wednesday morning.
Sources & Power Group share value chart
Mining will likely be undertaken by BM Mining, which REZ struck a very lucrative profit-sharing deal with back in mid-March.
BM Mining, which is a part of the BM Geological Companies (BMGS) group of firms which were energetic within the mining business within the Goldfields of Western Australia since 2003, lately acquired a small open pit mining fleet which has positioned the corporate to realize low price and environment friendly manufacturing.
Latest profitable tasks BM Mining has been concerned in embrace Hawthorn Resources’ (ASX:HAW) Trouser Legs open pits, Horizon Minerals’ (ASX:HRZ) Boorara open pits and Orminex’s (ASX:ONX) Comet Vale underground operations.
Below the deal, REZ didn’t should shell out a dime to get Granny Venn again in operation, with BM Mining masking the $3m capital outlay required.
Useful resource modelling and mine planning research have at Granny Venn, a part of REZ’s flagship East Menzies challenge, have pinpointed 5 areas of curiosity to take advantage of the present indicated and inferred useful resource.
The unique Granny Venn open pit, which was developed by Cash Mining and Paddington Gold in 1997-1998, was based mostly on a pit design optimised at a gold value of $454/oz.
The optimised pit recovered 532,000oz of ore which was processed on the Paddington gold mill at an total head grade of three.52 grams per tonne (g/t) with 94 per cent restoration of contained steel for about 60,000oz of gold.
Robust gold value makes for good economics
Right now’s Aussie greenback gold value is up at round $2,414/oz, which is greater than 5x the worth it was when Cash Mining and Paddington Gold had been creating the challenge.
This makes gold grades of 1-2g/t financial, particularly when the ore is amenable to low-cost standard carbon-in-leach processing and a fit-for-purpose mill is already in place.
A toll milling settlement to course of the Granny Venn gold via the Lakewood Mill is at a complicated stage of completion, REZ says.
The corporate lately accomplished grade management drilling forward of the restart of mining which delivered peak assays of 11m at 5.46g/t from 23m, 14m at 2.15g/t from 22m and 15m at 3.43g/t from simply 3m.
This text was developed in collaboration with Sources & Power Group, a Stockhead advertiser on the time of publishing.
This text doesn’t represent monetary product recommendation. It’s best to take into account acquiring impartial recommendation earlier than making any monetary choices.