Bryah Resources could be a gold miner in 2021
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Special Report: WA explorer Bryah (ASX:BYH) has been granted a mining lease over its Tumblegum South prospect, a “significant milestone” as it aims for first gold production in 2021.
Tumblegum South has a current gold resource of 600,000 tonnes at 2.2 grams per tonne (g/t) for 42,500 ounces.
This small, low-cost development will generate a nice amount of cash flow at today’s high gold price, giving Bryah the flexibility to accelerate its wider exploration activities or secure new projects.
The company is planning a small, ~12 month open cut mining operation at Tumblegum South.
Negotiations are well advanced for a collaboration agreement with a gold plant owner to develop and commence open pit gold production, it says.
A diamond drilling program is scheduled to kick off later this month to upgrade the existing resource status in readiness for mining and provide samples for metallurgical test work.
But there’s also an opportunity to grow the resource.
Very limited drilling to date means most of the resource is no deeper than 100 metres vertical depth.
A follow-up RC drilling program in 2021 will test potential to expand the resource, which offers extension potential down dip and along strike.
To have this mining lease granted in less than eight months gives Bryah a great chance to capitalise on the robust gold price, managing director Neil Marston says.
“We are well advanced in negotiations with a gold processing plant owner about collaborating on the development of the resource with our joint goal being to be fully permitted to start mining and processing gold sometime in 2021,” he says.
“The resource needs additional in-fill drilling to bring it up to a measured category, which we intend commencing later this month, ahead of a program of metallurgical testwork and pit design studies early next year.”
Bryah has tapped ex-Fortescue Metals (ASX:FMG) principal geologist Greg Almond to drive the Tumblegum South Project through its final stages of evaluation in readiness for mining.
“We have also appointed Mr Greg Almond, a very experienced mining professional to our team, to manage the project through the various studies and approvals needed to commence production,” Marston says.
This article was developed in collaboration with Bryah Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.