Greenstone Resources eyes near-term production from Phillips Find and Burbanks as gold prices soar
Special Report: Greenstone Resources is expediting pathways to production for its Phillips Find and Burbanks mining centres, with assays on their way from 15 of 75 relogged and sampled holes with the potential to add future resource ounces.
Phillips Find, combined with Burbanks, is part of Greenstone Resources’ (ASX:GSR) overall Coolgardie Mining Centre, which has a combined global resource of 6.8Mt @ 2.4g/t gold for 520,134oz and is supported by a network of existing infrastructure – including power, several neighbouring treatment plants and sealed roads.
Preliminary pit optimisation work is under way at both mining centres as discussions continue with potential partners for mining and processing ore from Burbanks and Phillips Find.
Initial pit optimisations for Phillips Find have shown the potential for large cutbacks on the existing Newminster and Newhaven open pits, which – along with the Baccus Gift pit – hosts a near-surface resource of 732,960t @ 2.3g/t gold for 54,567oz.
Newminster itself was profitability mined up until 2015 at a materially lower gold price of $1,500/oz – far below today’s prices of $3,085/oz.
The majority of the Phillips Find resource is within 140m from surface of the granted mining licenses, making it amenable to open-pit practices.
GSR says there’s also potential to use existing waste dump footprints and adjacent road infrastructure, both of which may expedite the path to production.
Burbanks is the larger of the two mining centres, hosting a 6Mt resource @ 2.4g/t for 465,567oz
Preliminary discussions with potential partners are under way to support the mining and processing of ore from Phillips Find and Burbanks North.
“While the focus for the company remains the continued growth of the resource base to support a long life and sustainable operation at Burbanks, GSR also believes that it is prudent to assess small-scale near-term production opportunities which may provide a near-term and non-dilutive source of funding to allow the Company to fund future exploration and resource growth activities,” GSR managing director Chris Hansen says.
“The recent open-pit optimisation work at Phillips Find and Burbanks highlights the potential for two high-grade open-pit cutbacks at Newminster and Newhaven within the existing mining lease footprint, with early discussions currently under way with potential mining and processing partners.
“As an existing small mining permit is already in place for Burbanks North, it is expected that this would be mined first, while concurrently progressing permitting and development studies for the Phillips Find open-pit cut-backs.
Outside of the current mining optimisation program, GSR is in the middle of a large resampling campaign at Burbanks project.
Fifteen of up to 75 holes having now been relogged and sampled, with the first batch of assays expected in the next 1-2 weeks.
It follows a recent detailed lithologic and petrographic review which identified up to 75 drill holes which may have intercepted previously modelled ore lodes.
“To put this resampling campaign into context, the typical ~10,000m drill campaigns previously completed by the company usually results in 30-40 holes being drilled,” Hansen says.
“Importantly, the resampling does not require any further drilling, merely low-cost sampling, and will possibly serve to improve geological continuity and confidence of ore lodes, and add future resource ounces.
“We look forward to updating shareholders over the near future with subsequent updates in relation to the mining optimisation works, the resampling campaign, and the release of the Mt Thirsty scoping study which is currently pending regulatory review.”
This article was developed in collaboration with Greenstone 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.