PERTH (miningweekly.com) – The Weednanna gold project, in South Australia, would likely require a capital investment of some A$44.4-million, a scoping study has found.
ASX-listed Alliance Resources on Thursday said that the scoping study, based on a 250 000 t/y gold processing plant and tailings storage facility, had confirmed a positive and robust project.
“The directors are delighted with the results of the scoping study and have determined that the outcomes provide strong encouragement for Alliance to commit to the next stage of its exploration and development programme,” said Alliance MD Steve Johnston.
The scoping study was based on an existing mineral resource of 1.09-million tonnes, grading 5.1 g/t gold for some 181 000 oz of contained gold, with the mineralisation remaining open along strike and at depth.
Johnston said that given the positive outcomes of the scoping study, Alliance has now started further drilling to extend the mineral resource and infill the inferred mineral resource in order to increase the ratio of indicated mineral resources.