(MENAFN - ProactiveInvestors - Australia) ABM Resources (ASX:ABU) has completed a resource upgrade at its Buccaneer Gold Project today, following yesterday's resource upgrade at the nearby high-grade Old Pirate Gold Deposit in the Northern Territory, Australia.
The Buccaneer Gold Deposit is located approximately three kilometres from the Old Pirate High-Grade Gold Deposit.
The Buccaneer resource update has been focussed on the higher grade zones within the global 2012 Buccaneer high grade zone resource model.
Darren Holden, Managing director of ABM Resources said, "We are very pleased at how well the higher grade
zones at Buccaneer hold together.
"There are several continuous and wide high grade zones modelled extending from near surface to depth. Buccaneer is only a few kilometres from our high-grade Old Pirate Deposit."
"The reoptimised Buccaneer model, focusing on the higher grade zones only, has added a further million ounces to our 1g/t gold cut-off mineral resource for the Twin Bonanza Project.
"Whilst Old Pirate is the immediate development focus, clearly the new Buccaneer HGZ Resource adds the potential for increased mine life and/or production rates to this well-endowed camp."
Buccaneer High Grade Resource
At a 2g/t gold cut off, the Buccaneer high grade resource is 677,300 ounces (top cut) at 3.61g/t gold (top cut). On an uncut basis, the resource is 826,500 ounces at 4.41g/t gold.
At a 1g/t gold cut off, the the Buccaneer high grade resource is 1,098,200 ounces at 2.23 g/t gold. On an uncut basis, the resource is 1,247,500 ounces at 2.54g/t gold.
- Buccaneer HGZ Resource for main Buccaneer area includes mineralisation:
650 metres by 550 metres footprint with up to 100 metre wide true-width mineralised zones. Mineralisation from surface to depths of 400 metres.
- 70% of the Buccaneer Porphyry remains to be tested with drilling.
This optimisation involves modelling of the higher-grade zones within the previous bulk tonnage resource model (April, 2012) which also remains valid and unchanged at:
- 127.9Mt averaging 0.65g/t gold for 2.672 million ounces (0.2g/t cut-off).
- Overall Twin Bonanza high-grade zones (Buccaneer HGZ (2g/t cut-off) plus Old Pirate Trend (1g/t to 3g/t cut-off & top-cut)) deliver a combined resource of:
- 7.72Mt averaging 5.2g/t gold for 1.29 million ounces of gold.
ABM said the 2012 resource estimation remains valid for a bulk tonnage system. However, ABM has this year sought to re-optimise the resource focussing on the higher grade zones within the overall low-grade shell.
This process has involved using a smaller drill hole composite length and block size with smaller search ellipse parameters and higher cut-off grades to effectively aim to reduce overall tonnes and increase the grade in the resource estimations.
As ABM moves towards a potential development phase at Old Pirate the amount of logistics and mining infrastructure will be increased.
Whilst the two mineralised systems are different in style, it sees potential synergies between the projects.
The Buccaneer Project is located 3 kilometres from the Company's Old Pirate Gold Project. Yesterday the company announced an updated resource statement for Old Pirate.
ABM's initial focus is to develop Old Pirate with a small but up-scalable gravity gold plant. Development at Old Pirate will increase infrastructure on the Twin Bonanza Gold Camp which has the possibility of being shared in the future development of Buccaneer.
Synergies may include camp, power generation, comminution and gold extraction. Whilst the two deposits have different styles of mineralisation (high grade coarse gold versus disseminated gold in stockwork veins), together they represent a substantial mid to high-grade resource.
ABM's multi-tiered approach to exploration and development is paying dividends with a combination of high-grade potentially short-term production scenarios such as Old Pirate and Golden Hind, as well as large scale discoveries such as Buccaneer. It also has regional exploration discoveries such as the Kroda Gold Project to boot.