Moho Resources eyeing potential ‘starter pit’ after unveiling interim East Sampson Dam resource
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Junior explorer Moho Resources is eyeing a potential starter pit at its East Sampson Dam gold project in WA’s Goldfields after announcing an interim high grade mineral resource.
Moho Resources (ASX:MOH) has unveiled a 264,000t JORC 2012 resource at East Sampson Dam grading 2.5g/t Au for 21,600oz at a 0.5g/t cut off.
Importantly, East Sampson Dam is just 50km northeast of one of the world’s richest gold districts in Kalgoorlie, with over 20 current and proposed processing plants nearby, offering an option to quickly monetise the resource through toll milling.
That could give Moho a leg-up within the realm of small cap gold explorers, as it could generate significant income from mining the deposit to fund further exploration activities.
Of the resource a substantial 70.2%, or 13,800oz, are in the higher indicated category, which will expedite progression of a mine plan.
93% of the ounces (19,000oz) are in soft, near surface zones of oxide, lower saprolite and transitional ore, something that should not only reduce the cost of digging it up but prove ideal for processing through one of the many nearby plants, given previous metallurgical tests to date showing around 95% recoveries.
The East Sampson Dam deposit’s grade is also highly sensitive to grade cut-off. That means just a 0.5g/t increase in the cut-off to 1g/t bumps the grade up to 4.3g/t with only a slight drop in ounces to 18,700oz.
Given the current $2467/oz Aussie dollar gold price, the in-ground value of the resource is significant, with more than $50 million worth of the precious metal in situ at current rates.
A scoping study is the next step for the company, with Moho managing director Shane Sadleir hailing the resource estimate as a major milestone as it looks to bring East Sampson Dam into production.
“Completion of the interim JORC mineral resource estimate marks a major milestone for Moho in advancing the East Sampson Dam prospect to potential gold production,” he said.
“Importantly there is significant potential to increase the resource estimate given mineralisation is open to the north, south and at depth.
“With that in mind, we are aggressively accelerating drill programs into H2 2021 while commencing a scoping study to progress mine development.”
As Sadleir noted, the resource remains open in all directions, meaning there will be plenty of additional value generated at East Sampson Dam through the drill bit.
A suite of aircore and RC drilling programs have been put together to further test the potential of the gold mineralisation at ESD and the nearby Silver Swan North project.
Moho has secured an aircore rig from Gyro Australia to drill 8000m to test auger soil anomalies over about 2.5km of strike at ESD and adjoining granted mining leases, including the Tyrells and Hodges prospects.
An RC program in the second half has also been prioritised to find extensions of the ESD resource.
At Silver Swan North an aircore program will take place in early 2022 to test several gold in soil anomalies identified in an auger sampling last year, including the Happs and Yalumba prospects southeast of ESD and prospects on nearby tenements under option from prospectors.
This article was developed in collaboration with Moho 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.