Dateline’s gold production train nears destination
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Dateline is edging closer towards becoming a gold producer with the start of mining operations at its Gold Links mine in Colorado.
The company has started mining and stockpiling ore from the high-grade 9900rl mineral resource, which has a head grade of 14.73 grams per tonne (g/t) gold, within the previously producing 2150 Vein.
Dateline Resources (ASX:DTR) adds that re-commissioning of the Lucky Strike mill is well underway, with campaign testing to commence next week.
It plans to operate the mill at an initial rate of about 100 tonnes per day though investigations are underway into upgrading the circuit to a capacity of 250tpd.
Additionally, a new contractor with equipment better suited for drilling deeper holes has been appointed to continue the 3650m drill program.
“We see 2022 as being transformative for Dateline Resources as we transition to a high-grade gold producer,” managing director Stephen Baghdadi said.
“With infrastructure already developed and in place, the operation will have very low capital intensity in addition to high grades that we believe will result in low operating costs.”
Gold Links is a high-grade, multi-vein gold system that includes four permitted mines and the permitted Lucky Strike mill.
While over 150,000oz of gold have been produced within the project area, it is only in the last couple of years that the majority of the land has been consolidated under a single entity – Dateline.
Previous exploration has assessed the potential for Gold Links to host over 2 million ounces of gold.
The company’s recent drilling had returned peak results of 94g/t gold and 89g/t silver.
Additionally, the ore zones encountered to date from mining operations at the 9900rl Mineral Resource appear to have widths and grades in line with expectations from the resource estimate.
Dateline has also drawn down a further US$3m from a working capital facility to fund production, development and exploration activities until the receipt of first cashflows from sale of gold from Gold Links.
This article was developed in collaboration with Dateline 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.