Javelin Minerals increases indicated resources at Eureka by 27%

• Javelin’s Eureka resource now grades 16% higher
• It includes an indicated resource of 1.3Mt at 1.8g/t for 78,678oz
• The updated resource will now be incorporated into mining studies to determine if the production plan can be increased

Special report: Javelin Minerals’ indicated resource at the Eureka gold project in WA has jumped 27% to 78,768oz, with much of the growth concentrated in the existing pit area, central to the company’s plan to unlock early cash flow.

The overall resource estimate for the project now stands at 2.04Mt at 1.69g/t for 110,687oz, delivering a material 16% increase in grade to the previous resource.

Javelin (ASX:JAV) has been conducting studies on mining 34,000 recoverable ounces in the southern corner of the pit, but is now reviewing whether any of the additional ounces from the upgrade should form part of the mining plan.

The company is also in discussions with mining and processing contractors, given the Eureka resource sits on a granted mining lease with several operating mills nearby, including Paddington just 20km as the crow flies.

Positive news

JAV executive chairman Brett Mitchell said the updated resource is a very strong result, reflecting the success of the maiden drilling program at Eureka.

Recent RC drilling was carried out to test for extensions of mineralisation along strike and beneath the existing open pit with results confirming mineralisation beyond the existing envelope.

Multiple intercepts highlighted both lateral and depth potential, supporting Javelin’s view that Eureka hosts significant upside.

“The increased indicated resource could have positive implications for our near-term mining plan, and we will assess these implications as part of the studies now underway,” Mitchell said.

“At the same time, we are planning further exploration drilling with the aim of growing the resource and upgrading more of the inferred resource ounces to indicated.

“There is now overwhelming evidence that the upside at Eureka is extremely strong, both on the exploration and production fronts, and we have a great opportunity to generate significant shareholder value.”

A new drilling program is now being planned with the aim of increasing the overall resource and converting more of the inferred component to indicated.

This article was developed in collaboration with Javelin Minerals, 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.