Greenstone Resources Limited (ASX:GSR) has successfully completed a maiden gold pour from the Burbanks Mining Centre as part of the Stage I Trial Mining Agreement Joint Venture (Joint Venture) between Greenstone and FMR Investments Pty Ltd.
The Burbanks Mining Centre forms part of the Company’s 100% owned Burbanks Gold Project, 9.0 kilometres South of Coolgardie, Western Australia.
The first processing campaign through the neighbouring Greenfields Mill commenced in late December 2021, with 20,500 tonnes of low-grade development ore (diluted ore from underground development drives) processed over nine days, resulting in a maiden gold pour of 840 ounces (unreconciled) worth A$2.1 million.
Processed grades through the mill were in line with expectations, with final production from the initial campaign to be reported on completion of a full reconciliation, including Gold in Circuit (GIC) and refining adjustments.
The recovered doré bullion has subsequently been shipped to the Perth Mint for refining and sale, with first revenue to the Joint Venture expected over the coming weeks. With high-grade underground ore stoping activities now underway, a further 2-3 processing campaigns are expected, totalling between 60,000-75,000 tonnes over the coming months.
Managing Director and CEO, Chris Hansen, said this represents a major milestone in Greenstone’s renewed strategy, serving to expedite the path to long-term and sustainable commercial production through the provision of invaluable technical information associated with geology, underground mining and processing.
“Importantly, this initial processing campaign only utilised the low-grade development ore mined during the establishment of underground operations.
“As high-grade underground stoping ramps-up over the coming months, we expect a further two to three high-grade milling campaigns.
“While trial mining activities serve to materially de-risk current and future operations, the core focus for the team remains on building our resource inventory from the current base (1.2Mt @ 3.7g/t Au for 145,700oz) through the continuation of aggressive exploration activities at Burbanks.
“Planning is currently well advanced for the first drill campaign of 2022, with a multi-purpose diamond and reverse circulation drill rig scheduled for mobilisation in late January. The initial focus will be on following up on the high-grade mineralisation intercepted immediately north of the Burbanks Mining Centre in late December 2021, where high-grade mineralisation was previously thought to terminate due to faulting.
“The recent intercept in BBDD0025 (3.1 metres @ 11.72g/t Au from 282.4 metres3 ), in conjunction with several holes completed in early 2021, serves to extend the prospective strike extent for high-grade mineralisation at Burbanks North to over 1.50 kilometres.
“Finally, the remaining four diamond holes completed in late 2021 have since been submitted for analysis, with results expected over the coming weeks.”
Under the terms of the Joint Venture, FMR carries all mining and financial risk on the agreed mining operations within the Initial License Area, with any profits after expenses to be evenly split. The Stage I Trial Mining Joint Venture is expected to materially de-risk the project through the provision of invaluable technical and financial information which will guide future production and exploration decisions.
For further information please visit: https://greenstoneresources.com.au/
