Ora Gold’s Crown Prince is advancing towards gold production
Link copied to
Special Report: Bringing the small but high-grade Crown Prince deposit into production in the next couple of months remains the key focus for WA-based Ora Gold.
In December 2019, last year, Ora Gold (Company) released a positive scoping study in relation to the Crown Prince open pit development – part of its Garden Gully tenements near Meekatharra in WA — would mine 177,472 tonnes of oxidised ore grading 4.1 grams per tonne (g/t) to produce about 22,444 ounces of gold.
The mine would cost an estimated $4.7m to develop. All-in-sustaining costs (AISC) are estimated at a very low $1,006 per ounce (oz) with Ora Gold (ASX:OAU) expecting the project to generate $21.1m profit before tax using a gold price of $2,000/oz.
Gold is currently selling for $2,475/oz.
Between 1908 and 1915, the 21.7g/t Crown Prince underground mine produced 20,178oz from two strongly mineralised quartz veins to a depth of 90m below surface.
The project is just 18km northwest of Meekatharra, providing easy access to transport and available infrastructure as a satellite ore source for a local processing plant.
Non-executive director Phil Crabb told Stockhead “that over the next few months the Company will be finalising all necessary paperwork like native title and environmental approvals.
We have yet to pick out a toll treatment partner, but we are currently evaluating the proposals before us. In the meantime, we are evaluating the rest of the area at Garden Gully, selecting drill targets for the ongoing campaign.”
Across the broader Garden Gully area previous drilling had returned high-grade assays of 10m grading 41.8g/t gold from 30m, 4m @ 48.9g/t gold from 123m and 8m @ 13.5g/t gold from 16m.
Crabb added that the Company will, at some point, carry out follow-up drilling at depth at Crown Prince to determine the viability of underground operations.
Drilling has already confirmed that high-grade gold mineralisation at Crown Prince extends to a depth of at least 270m below surface. The Company is also re-evaluating the nearby Abbotts prospect for deeper drilling.
Crabb also said “Abbotts has definite open pit and underground potential. We are attempting to unlock the key to that structure”.