Maiden resource imminent after stellar metallurgy results as Felix looks to tap into record high gold market

Impressive recoveries averaged 89% from near surface oxide gold mineralisation, and reached as high as 94.5%
An initial maiden JORC resource in progress right next to the ore hungry Fort Knox Gold Mine
NW Array part of Treasure Creek project, in the same district as 11.8Moz Fort Knox mine and Freegold Ventures’ 19.7Moz Golden Summit project in Alaska
Fort Knox is actively seeking additional ore supply

Special Report: Testwork has yielded impressive recoveries over 90% at Felix Gold’s NW Array prospect ahead of a maiden gold resource, which the explorer says “will set the platform” to build towards the profile of Kinross Gold’s nearby Gill-Sourdough mine in Alaska.

Felix Gold (ASX:FXG) one of the largest claim holders in the Fairbanks Gold Mining District, where historical gold production exceeds 16Moz.

Its leases are literally sandwiched between Kinross’ 11.8Moz Fort Knox mine (19km away) and Freegold Ventures’ 19.7Moz Golden Summit Project (18km away).

Felix Gold’s focus is on the Treasure Creek project, where maiden drilling in 2022 returned a “substantial discovery at NW Array [a 2.5km x 2.5km gold-in-soil anomaly] and several other potential major gold systems”.

FXG is now progressing to a maiden Jorc Inferred Resource at NW Array – an open-at-surface, oxide and flat-lying 2km by 600m gold system – which could potentially be fast tracked to production due to its proximity to the mill at Fort Knox.

Felix Gold ASX FXG — That close. Pic: FXG

Significant thick, shallow and high-grade drilling results from 2023 include:

70.1m at 1.6 g/t from 6.1m, incl. 7.6m at 6.4 g/t from 21.3m
100.5m at 1.14 g/t from 21.3m, incl. 47m at 1.7 g/t from 38.1m; and,
54.9m at 1.80 g/t Au from 1.5m incl 30.5m at 3.02 g/t Au from 7.6m.

FXG’s tenure also includes the Grant mine, a high-grade brownfields resource expansion opportunity.

There’s been no better time to explore for gold, with prices recently lifting above US$2300/oz for the first time in history – over $3500/oz in Aussie dollar terms.

‘Impressive’ gold recoveries, maiden resource pending

FXG says 24-hour bottle roll leach test work has yielded impressive gold recoveries of up to 94.5% for oxidised samples taken from coarse rejects from drilling at NW Array.

Samples of oxidised material within 50m from surface reported average gold recoveries of 90%.

Bottle roll leach test work provides info on expected gold recovery rates, and the amount of money a mining company will need to spend on reagents (chemicals used to extract gold from ore).

30 samples selected for testing also confirms the gold is free milling and recoverable using cyanide. That’s a good thing.

FXG says these results are consistent with those of mines running within the area around Kinross’ Fort Knox.

A Gill-Sourdough lookalike?

FXG exec director Joe Webb says the focus now sharpens on finalising the maiden resource for the NW Array prospect in Q2 2024 and advancing the growth of the previously operating Grant mine.

Grant has an existing high-grade resource of 364,000oz, including 136,000oz at an ore grade of 6.2g/t gold.

“We’re laying the groundwork for continuous resource expansion and economic studies in a gold-rich locale, bolstered by existing infrastructure and the proximity of Kinross Gold Corporation’s Fort Knox gold mine, which actively seeks additional ore supply,” he says.

“We envision the pending maiden resource at NW Array Prospect to set the platform to build towards the profile of Kinross Gold’s Gill-Sourdough Mine, which boasted a Ni-43-101 measured and indicated resource of 533Koz at 0.55 g/t au, that has been a vital ore source for Fort Knox Gold Mine for the past 2 years.

“This complements our Grant mine, representing a lucrative brownfields resource expansion opportunity, along with our extensive district-scale land package, all aligned with our sustained objectives of identifying, growing and commercialising economic ore deposits.”

This article was developed in collaboration with Felix Gold, 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.