News

Chalice Mining Limited (ASX: CHN) is delighted to announce an updated Mineral Resource Estimate (MRE) for its 100%-owned Gonneville PGE-Ni-Cu-Co Project, situated on Chalice-owned farmland approximately 70km north-east of Perth in Western Australia. This development marks a significant stride towards optimizing the Project amid a challenging commodity price landscape.

The discovery of the extensive Gonneville orthomagmatic palladium-platinum-nickel-copper-cobalt sulphide deposit by Chalice in early 2020 has been a focal point. Over the past four years, an extensive drilling campaign encompassing more than 1,200 drill holes spanning approximately 320,000 meters has been executed to delineate the Resource, which remains open to the north-west and down-dip.

Since the last Resource update in March 2023, meticulous modeling efforts have honed in on reinterpreting high-grade sulphide zones within the Resource, enabling exploration of selective mining methodologies in greater detail. Notably, the updated MRE includes separate modeling of high-grade palladium, nickel, and copper zones to enhance delineation of mineralogical domains. Previous Resource models predominantly assumed bulk open-pit mining methods with considerably larger block sizes.

Furthermore, the integration of 56 additional drill holes serves to bolster confidence in the Resource and extend its depth down-dip to approximately 1,100 meters. The Resource comprises a mixture of oxide, transitional, and fresh mineralization. Sulphide mineralization within the pit is delineated at two distinct Net Smelter Return (NSR) cut-offs, one reflecting the initial emphasis on a high-grade, selective mining starter case, and another indicative of potential future expansion into bulk open-pit mining.

As of April 23, 2024, the updated Resource for the Gonneville deposit is presented in Tables 1 and 2, with key variances between the March 2023 and April 2024 estimates highlighted in Table 3.

Commenting on the updated Resource, Chalice Managing Director & Chief Executive Officer, Alex Dorsch, remarked:

"The remodeled high-grade sulphide Resource marks the initial phase in the recalibration of the development strategy for the Gonneville Project. The refined high-grade model serves as a foundation for designing a more selective, smaller scale starter project.

"The starter project blueprint aims to prioritize higher grades initially, thereby enhancing recoveries and overall margins, with the aim of fortifying the project's resilience in a conservative commodity pricing environment. Additionally, the reduced scale of the starter project translates to lower development capital costs and consequently a diminished risk profile.

"Crucially, the scaled-down starter project design allows for potential expansion into a larger scale bulk mining operation contingent upon prevailing economic conditions. Initial selective mining preserves the flexibility for future expansion, as mined material can be stockpiled for subsequent processing. This phased development approach mitigates risk, optimizes capital deployment, and maximizes flexibility.

"Encouragingly, recent step-out drill holes have confirmed further Resource growth at depth and unearthed additional exploration upside, reaffirming Gonneville's status as a world-class mineral system of generational significance.

"We eagerly anticipate finalizing the revised Scoping Study Starter Case in the ensuing months and advancing the Pre-Feasibility Study, slated for completion in mid CY25. Armed with the enhanced Resource model and a robust cash position, Chalice is well-positioned to advance this distinctive critical minerals project."

The mineral resource estimate (MRE) for Westgold Resources’ Bluebird–South Junction project has surged by 134 percent, equivalent to 474,000 ounces (oz) of gold.

Situated 15km southwest of Meekatharra, Western Australia, the Bluebird underground gold mine forms part of Westgold’s Meekatharra operations.

In late 2019, Westgold initiated underground activities at Bluebird, resulting in the extraction of over 137,000oz of gold. This contributed to a total recorded gold production of 784,000oz at Bluebird and 1.18Moz across the combined Bluebird–South Junction project.

The mineral resource of the Bluebird–South Junction project now stands at 6.4 million tonnes, averaging 3.1 grams per tonne (g/t) for 827,000oz of gold.

Wayne Bramwell, Westgold's managing director and chief executive officer, stated, “Expanding our largest mines to enhance productivity and profitability is a primary goal for Westgold, and our ongoing investment in drilling is adding both scale and value for our shareholders.”

Bramwell added, “A 500,000-ounce increase in the mineral resource at Bluebird–South Junction, despite nine months of mining depletion, underscores the quality of this orebody and the success of our investment.”

Expansion opportunities at Bluebird–South Junction extend to deeper levels and along-strike in the zone between current drilling areas and the base of the South Junction open pit.

A drilling program commenced at Bluebird–South Junction in January, with three surface rigs and two underground rigs currently operational.

Noteworthy recent intercepts from Bluebird–South Junction include:

• 20.40m at 5.12g/t of gold from 278.90m in hole 24BLDD017
• 28.90m at 3.59g/t of gold from 244.64m in hole 24BLDD015
• 10.45m at 3.80g/t of gold from 788m and 3.98m at 10.80g/t of gold from 894.49m in hole 24SJDD001.

“Our expansion endeavors at Bluebird – South Junction are gaining momentum, with five drill rigs currently in operation,” Bramwell remarked.

“A new underground diamond drill platform aimed at exploring the upper reaches of South Junction is slated to begin this quarter.”

It was disclosed last week that Westgold is poised to broaden its portfolio significantly through a merger with WA gold miner Karora Resources.

Pantoro Limited is celebrating a historic performance in the March quarter, with a remarkable 8,298 ounces of gold produced solely from its Norseman project in Western Australia.

Throughout the entire March quarter, Norseman yielded a total of 19,235 ounces of gold, contributing to positive cash flow for Pantoro in both February and March. The Norseman processing plant surpassed expectations, processing 284,535 tonnes with an impressive recovery rate of 94.7%.

The company underwent significant transformations over the past three months, including a complete contractor transition in open pit operations, now managed by APS Mining and Civil. Additionally, RUC Mining Contractors secured the underground mining contract for the Scotia open pit, set to commence operations in May 2024.

Pantoro anticipates that the Scotia underground mine will become the primary production source by late 2024. The accelerated development of Scotia will lead to the pit opening four months ahead of schedule, aiming for an annual production of 100,000–110,000 ounces.

Taking over the Norseman project in February 2023 through a merger with former partner Tulla Resources, Pantoro has made significant strides. Since 2019, they've completed over 300,000 meters of RC and diamond drilling, defined ore reserves exceeding 958,000 ounces, constructed a new one million tonne per annum gold processing plant, and resumed production. Presently, the mineral resource stands at 4.8 million ounces of gold.

 Ramelius Resources Ltd (ASX: RMS) is thrilled to announce its outstanding performance in the March 2024 Quarter, achieving record-breaking gold production of 86,928 ounces. This figure surpasses the implied gold production guidance for the quarter, which ranged from 70,000 to 77,500 ounces. The company's production has exceeded all expectations, marking a significant milestone in its operational history.

The previous record for group gold production stood at 86,516 ounces, achieved in the June 2020 Quarter. Ramelius has now eclipsed this milestone, demonstrating its continued growth and operational excellence.

Moreover, Ramelius reported a robust financial performance, with a substantial increase in its balance sheet strength. The company's cash and gold reserves reached $407.1 million, a notable rise from $281.8 million in December 2023. This significant improvement is attributed to the generation of record free cash flow amounting to $125.3 million during the quarter. The previous record for free cash flow was $69.4 million in the June 2020 Quarter, underscoring Ramelius' financial resilience and efficiency.

As a result of its exceptional production and financial achievements, Ramelius anticipates that its all-in sustaining costs (AISC) for the quarter will be substantially lower than guidance. The AISC for the second half of FY24 is projected to be in the range of A$1,700 to A$1,800 per ounce, with the actual outcome expected to fall between A$1,375 and A$1,475 per ounce. This reduction in costs further enhances the company's profitability and operational sustainability.

In terms of operational performance, Ramelius reported the following breakdown of quarterly gold production:

- Mt Magnet (including Penny): 45,927 ounces

- Edna May (including Tampia, Marda, and Symes): 41,001 ounces

The company has ceased the practice of releasing a separate production update prior to its quarterly report, in line with its commitment to continuous disclosure obligations. Any significant deviations from guidance will be promptly communicated in accordance with regulatory requirements.

Ramelius Resources' remarkable performance in the March 2024 Quarter underscores its position as a leading player in the gold mining industry. With a strong production base, solid financial fundamentals, and a commitment to operational excellence, the company is well-positioned for sustained growth and value creation in the future.

Westgold Resources Limited is pleased to present its preliminary production results for Q3, FY24. Despite encountering challenges such as the operational pause at the Paddy’s Flat underground at Meekatharra and adverse weather conditions across all operations, Westgold achieved notable milestones.

In Q3 FY24, Westgold produced 52,100 ounces of gold, with an average sale price of $3,137/oz. Despite the challenges mentioned, the Company managed to increase its cash and bullion reserves by $9M, reaching a total of $247M by the end of the quarter.

However, acknowledging the impact of these challenges on production, the Company has revised its full-year FY24 production guidance to 220,000 – 230,000 ounces at an all-in sustaining cost of $2,100 – 2,300/oz until development plans are finalized. Wayne Bramwell, Managing Director and CEO of Westgold, emphasized the Company's commitment to prioritizing free cash flow over maximizing total production.

Bramwell stated, “Westgold has now achieved five consecutive quarters of cash accumulation, adding $9M to our treasury despite facing significant hurdles. While we are dedicated to recovering lost ounces in FY24, we are resolute in our decision to pause operations that do not meet our shareholders' expectations."

Despite pressure to accelerate mining activities at the Great Fingall mine in Q4, FY24, Westgold remains cautious, opting for a systematic evaluation of the project's feasibility before commencing mining in Q1, FY25.

On a positive note, the Starlight mine continues to surpass expectations, while drilling at Bluebird-South Junction expands the mine's footprint. With 12 drills in operation, Westgold remains focused on enhancing reserve growth across its asset portfolio.

The Company acknowledges the presence of forward-looking statements in this announcement, based on its current expectations about future events and results. While these statements are made in good faith and believed to have a reasonable basis, they are subject to risks, uncertainties, and other factors that could lead to actual results differing materially from those projected.

These risks include resource uncertainty, metal price fluctuations, currency variations, increased production costs, and deviations in ore grade or recovery rates from mining plans. Westgold encourages readers not to overly rely on forward-looking information and assures its commitment to adhere to applicable securities laws regarding the release of any revisions to forward-looking statements.

Spartan Resources Limited (ASX: SPR) unveils significant exploration findings at its Dalgaranga Gold Project in Western Australia.

Spartan Resources Limited has announced a groundbreaking discovery at its Dalgaranga Gold Project in Western Australia. Recent deep drilling has revealed visible gold over 1 kilometer below the renowned Never Never Gold Deposit, indicating substantial mineralization at considerable depths.

The company's drilling efforts have yielded promising results, with over 20 meters of characteristic Never Never-style mineralization detected from a depth of 1,034 meters. Notably, traces of visible gold were observed at 1,046 and 1,050 meters, emphasizing the potential for significant gold deposits at unprecedented depths.

This discovery comes as a significant advancement in Spartan's systematic exploration of the Never Never mineral system. The intercept, characterized by heavy silica flooding, sericite/biotite alteration, and visible gold, marks a substantial extension of the existing mineralization, surpassing 400 meters below the current 0.95 million ounce high-grade Mineral Resource Estimate (MRE).

Spartan's Managing Director and CEO, Simon Lawson, expressed enthusiasm about the discovery, citing its implications for future mining operations. "This latest intercept is another fantastic development in our ongoing exploration efforts," said Lawson. "It extends the mineralization to more than 400 meters below the existing resource and provides clear evidence of the deposit's scale and endowment."

The company's exploration activities also yielded significant results at the Sly Fox Gold Deposit, where assays indicated a doubling of the mineralization footprint. With further drilling planned for resource conversion and exploration, Spartan remains committed to unlocking the full potential of its assets.

In addition to exploration activities, Spartan is actively engaged in mining study work to optimize future operations. With a focus on delivering shareholder returns and building a sustainable, high-grade mine plan, the company is poised for continued growth and success in the gold mining sector.

As exploration efforts intensify and development pathways emerge, Spartan Resources Limited stands at the forefront of Australia's gold mining industry, poised to capitalize on its significant discoveries and drive long-term value for shareholders.

Abra Mining has enlisted administrators, appointing Richard Tucker and Robert Hutson of KordaMentha.

The company, jointly owned by Galena Mining (60%) and CBH Western Australia (40%), is responsible for managing the Abra base metals mine located in the Gascoyne region of WA.

Previously, Abra faced challenges with ramping up mining rates, maintaining mined grade, and contending with recent rainfall events that hindered the transportation of crucial supplies and concentrate haulage.

Tony James, Galena's managing director, reported in March that flooded roads in February and March disrupted concentrate production and haulage, necessitating the preservation of LNG stocks. Additionally, the mined and processed grade fell below expectations due to ongoing operational variances and modeling issues.

To address these challenges, the mine has accelerated a mill re-line, originally slated for April, with the aim of achieving uninterrupted processing once road access is restored.

In January, 107,886 tonnes (t) of ore were milled at a 5.3% lead grade, yielding 7861t of concentrate. However, mill operations were hindered by 95 hours of downtime that same month.

Galena has disclosed that the administrators intend to continue operating the Abra mine and processing plant under normal business conditions while exploring various operational strategies.

Westgold has released its preliminary production figures for the third quarter of the 2023–24 financial year (Q3, FY24).

During this period, Westgold's operations yielded a total of 52,100 ounces of gold, with an average gold price of $3137 per ounce.

Despite facing challenges such as operational pauses and adverse weather conditions at Paddy’s Flat underground, a component of the Meekatharra operation in Western Australia, the gold miner managed to increase its cash and bullion reserves by $9 million. This brings the company's total to $247 million for the quarter.

Wayne Bramwell, the managing director and chief executive officer of Westgold, noted the company's achievement of five consecutive quarters of cash accumulation, adding $9 million to their treasury amidst a challenging quarter.

"While various factors impacted our physical outputs, our primary focus remains on generating free cash flow rather than maximizing production volume at any cost," Bramwell stated. "We are committed to recovering lost ounces in FY24 but are willing to halt operations in mines that fail to meet our shareholders' expectations in terms of returns."

Currently, Westgold is evaluating the feasibility of initiating mining operations ahead of schedule at the Great Fingall mine in WA, weighing the associated pros and cons. Bramwell emphasized the importance of conducting a thorough evaluation of operational risks and costs before making any decisions.

"The challenges faced during Q3 have heightened the pressure to commence mining prematurely at the Great Fingall mine in Q4, FY24. However, rushing into mining without adequate data poses significant operational risks and cost escalations," Bramwell explained. "Therefore, Westgold intends to systematically complete its assessment of early mining activities at Great Fingall, aiming to commence mining in Q1, FY25."

On a positive note, Bramwell highlighted the success of the Starlight mine, which has surpassed expectations, as well as the ongoing expansion of the Bluebird-South Junction mine footprint through drilling activities. With 12 drills in operation, Westgold remains focused on enhancing reserve growth across its asset portfolio.

Gold Road Resources has provided an update on the continued rain impacts affecting the Gruyere joint venture, shared with Gold Fields.

In early March, the gold miner bravely persevered through adverse weather, processing stockpiles at the site despite enduring six months’ worth of rain in less than two weeks.

However, recent developments have brought further challenges. Between March 19–28, the region experienced another bout of “significant and atypical” rainfall, impacting access roads to Gruyere.

Fortunately, the processing of low-grade stockpiles managed to continue for most of this rainy period. Yet, plant operations were halted from March 28 onwards, with a scheduled maintenance shutdown expedited to mitigate disruptions to annual gold production.

The closure of the main supply route to Gruyere, the Great Central Road, since March 5, due to extensive flood damage, has significantly hindered mining activities for the March 2024 quarter.

In collaboration with the Laverton Shire, Yilka, and other local communities, the Gruyere JV has mobilized resources to expedite repairs to the Great Central Road, utilizing earthmoving equipment and personnel from Gruyere.

However, repairs to the flooded sections are expected to be time-consuming. Operations at Gruyere are forecasted to resume in the first week of April.

Despite the prolonged impact of these rainfall events, Gold Road maintains its 2024 annual guidance for Gruyere, with anticipated gold production falling within the lower half of the guidance range of 300,000 to 335,000 ounces (150,000 to 167,500 ounces attributable). Additionally, attributable all-in sustaining costs (AISC) are expected to fall within the upper half of the range between $1900 and $2050 per ounce.

Bellevue Gold has uncovered a vein of ore at its Deacon deposit in Western Australia, boasting exceptionally high grades that surpass initial resource estimates. This discovery echoes the characteristics of other high-grade pyrrhotite-bearing deposits historically mined nearby at the Bellevue load.

The Deacon deposit, one of the primary production zones within the Bellevue gold project, has yielded promising results. According to Bellevue's managing director, Darren Stralow, these findings resonate with the rich legacy of high-grade gold in compact structures historically associated with the Bellevue mine.

The latest infill drilling has exceeded expectations, showcasing grades that outstrip the initial resource estimates. This high-grade ore discovery promises to enhance the early stages of mining operations, ensuring robust production results as the project progresses towards full-scale production.

Furthermore, Bellevue is enthusiastic about the potential for additional discoveries along the Deacon shear, which presents multiple analogous targets for further exploration through underground drilling. To expedite this process, Bellevue is mobilizing additional resources, including another underground drill rig, to intensify infill drilling efforts at Deacon Main in pursuit of similar success.