(MENAFN - ProactiveInvestors - Australia) Phosphate Australia (ASX:POZ) has defined a maiden Indicated and Inferred JORC Resource of 2,020,000 tonnes for 100,700 ounces of gold at its Tuckanarra project in Western Australia.
The project could be potentially a low cost operation with mineralisation being shallow with high recoveries yielding a grade of 1.55 grams per tonne (g/t) of gold.
Further drilling is likely to start in the first quarter of 2013 to test the extension zones and increase the maiden resource.
The Tuckannarra gold project is located in the prolific West Australian Murchison goldfield and had historic production of about 125,000 ounces.
It is mainly centred around the Cable-Drogue-Bollard line of workings which accounts for 69,800 of the total 100,700 ounces.
The surrounding resources are all within 2,500 metres of Cable Bollard, with bonanza grades at the Cable West High Grade Zone potentially offering 5,500 ounces at 53.98g/t gold.
The Cable West resource of 10,200 ounces at 2.5g/t gold and the Cable Central resource of 3,700 ounces at 1.37g/t gold underlies the current Cable pit ramp.
The resource potential at Tuckanarra appears commercially attractive with very high grades at Cable West High Grade and adjacent shallow resources potentially allowing an early pay back on development, while other resources at Maybelle, Maybelle North, Lucknow and Miners Dream could provide subsequent mill feed.
The project was acquired by Phosphate Australia in August 2011 and has completed three drilling programs, metallurgical studies and a JORC maiden resource.