Ora Gold Limited (ASX: OAU) has been granted a number of mining leases by the Department of Mines, Industry, Regulation and Safety for the company’s 100% owned Crown Prince (M51/886) and Lydia (M51/889) Gold Projects in Western Australia.
The granting of the Mining Leases for a period of 21 years until 2043 is a very important milestone in the Company’s proposed development of the Crown Prince Gold Project located in the Murchison region of Western Australia.
The Crown Prince deposit is located about 18 kilometres north-west of Meekatharra in Western Australia on the Mt Clere Road. A Mineral Resource update and positive scoping study have been completed.
Historical production was 29,400 tonnes for 20,178oz at a recovered grade of 21.7g/t Au to a depth of 90 metres. The unmined supergene halo and other zones provide a Mineral Resource Estimate for the Crown Prince deposit.
The estimate is only to a depth of 270m and used block modelling with Ordinary Kriging interpolation, a block cut-off grade of 1.2g/t Au and top cut of 30g/t Au. It is a combination of Indicated and Inferred Resources to 100m depth and Inferred Resources for deeper mineralisation.
Further drilling and development of deeper high-grade mineralisation (cf. deepest hole TGGRCDD110 of 8m at 22.3g/t Au from 259m) and newly identified parallel zones may increase the Mineral Resource estimate. An oxide open pit design was the basis for the positive scoping study.
The scoping study pre-tax financial forecast is the 100% site surplus after direct costs of predevelopment, mine establishment, operating, sustaining capital and mine closure and the payment of state and private royalties.
The estimate basis is of a small mine and a large offsite processing plant and does not include any cost or revenue sharing arrangement with a processing party. Ora Gold has sufficient accrued tax losses to offset all income tax liabilities for the proposed project.
The company is continuing its discussions with gold mining companies with existing infrastructure in the Murchison Region for off-site treatment of the proposed Crown Prince oxide open pit and underground operations.
For further information please visit: https://www.ora.gold/
