(MENAFN - ProactiveInvestors - Australia) BCD Resources (ASX: BCD) has delivered an initial resource of 517,000 tonnes at 1.8 grams per tonne (g/t) for 29,900 ounces of contained gold for its wholly owned Middle Arm Tailings Project in Northern Tasmania.
The company is assessing the potential of processing the remaining tailings from the early phase of operations at the Tasmania Mine at Beaconsfield, which closed in June.
The mine operated in two phases, with early operations from 1877 to 1914, and modern operations from 1999 to 2012.
The battery and associated plant infrastructure, known as the reduction works, were located about one mile from the main (Hart) shaft, on the banks of the Middle Arm Creek.
Tailings from the reduction works were discharged into the creek, and this material was then carried into Middle Arm.
Records indicate about 1.04 million tonnes of ore was treated at the reduction works, with about 855,000 ounces of gold produced at a recovered grade of 25.6g/t.
This resulted in the deposition of about 1.04 million tonnes of tailings into Middle Arm.
Between 1985 and 1988, Golconda Resources re-treated 541,000 tonnes of tailings from Middle Arm and produced 20,448 ounces of gold at a recovered grade of 1.18g/t using a cyanide leaching process.
A minimum of 500,000 tonnes of tailings is estimated to remain in Middle Arm.
An exploration licence covering Middle Arm Bay was granted to BCD Resources in August 2012 and a program of vibracore drilling to determine the volume and grade of remaining tailings has been undertaken.
With the gold resource established, scoping studies on a dredging operation with carbon-in-leach treatment at the Beaconsfield plant will be undertaken, along with environmental studies.