REZ completes first Granny Venn gold milling campaign at higher grade, recoveries
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REZ and mining partner BM Mining Services have beaten expectations in the first gold milling campaign at Granny Venn, delivering higher grade and recoveries.
Richard Poole-led Resources & Energy Group (ASX:REZ) revealed today that a total of 24,459 tonnes of Granny Venn ore was milled at a head grade of 2.47 grams per tonne (g/t) for 1,766 ounces of gold at a recovered grade of 2.23g/t.
This represents 97% of the modelled reserve tonnes, 107% of the modelled grade and 104% of the estimated ounces recovered.
“This is a great outcome for the project and underscores the capabilities of our mining partner BM Mining Services to deliver a result at or above mine plan estimates,” director Dan Moore said.
The East cutback is the primary resource for the Granny Venn operation, part of the Menzies gold project in Western Australia.
“Early indications are that the ore resources are larger than originally modelled, which will be confirmed following receipt of grade results from the first ore shots.” – Executive Director Richard Poole.
“Our initial goal was to mine 120,000 tonnes of ore at an average grade of 2.3 grams per tonne to produce 8,800oz of gold, which at today’s high gold price will provide REZ with an additional cash boost to fund continued exploration at the Menzies project.”
REZ and BM Mining Services completed the maiden gold pour in late October, marking the milestone start of production.
Before REZ and BM Mining restarted mining at Granny Venn in early July this year, no mining activity had taken place in 23 years.
So far, a total of 17,000 tonnes has been delivered to the Lakewood mill, with the second campaign of 25,000 tonnes set to begin later in December.
“We look forward to the second milling campaign where mining operations have reached the ore body in the East cutback,” Moore said.
REZ and BM Mining partnered up under a profit-sharing agreement back in March to exploit the economically recoverable remnant resources at the Menzies project.
BM Mining is part of the BM Geological Services (BMGS) group of companies that have been active in the mining industry in the Goldfields of Western Australia since 2003.
This article was developed in collaboration with Resources & Energy Group, 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.