Great Southern’s updated Mon Ami resource could lead to much more gold
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Great Southern’s updated mineral resource for its Mon Ami project stems from a new geological interpretation that could lead to further gold discoveries.
The new resource of 1.56 million tonnes grading 1.11 grams per tonne (g/t) gold for 55,000oz of contained gold is also a positive for the company as 95% of it is in the higher confidence indicated category.
Indicated resources have sufficient information on geology and grade continuity to support mine planning, which is likely why Great Southern Mining (ASX:GSN) now considers Mon Ami to be “shovel-ready” subject to a commercial milling solution and final approvals.
“We are pleased to announce this new geological interpretation and upgrade to the Mineral Resource classification at Mon Ami,” chief executive officer Sean Gregory said.
“We believe that the new geological interpretation has ‘cracked the code’, which may enable further gold discoveries along strike and at depth.
“Supporting technical and environmental studies have all been completed to a very high standard.”
With ancillary tenements granted and heritage surveys completed, the company has prepared a data room to assist in discussions aimed at securing a milling solution.
Gold mineralisation at Mon Ami extends over a strike length of at least 770m and is hosted in a main north-south striking vertical lode tracing the Barnicoat Shear Zone.
The updated resource identifies at least five moderate north-west dipping lodes stepping off the western margin of the vertical lodes.
The Bordee 1, Bordee 2, Richie and Mon Ami lodes are named after small-scale historical underground workings while the Gully lode is a topographical feature.
This new geological interpretation is expected to aid improved exploration targeting at Mon Ami as the periodicity of the lode occurrences may enable additional lodes to be discovered along strike.
In addition, the highest-grade mineralisation is encountered at the intersection of the north-west dipping lodes and the vertical lode, providing Great Southern with a vector for further exploration at depth for possible underground high-grade extensions to the deposit.
Potential mining at Mon Ami is expected to involve drill and blast, load and haul open pit mining.
Further testwork on the comminution properties of Mon Ami ore is nearing completion.
This work is expected to quantify the soft nature of the meta-sedimentary rocks hosting the mineralisation at Mon Ami.
Previous work on the leaching characteristics achieved average gold recoveries of about 95% in the fresh and transitional rock that is expected to be the focus of any open pit development.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.