“Under The Headframe” Strategy Paying Off
Wiluna Mining Corporation Limited (ASX WMX) has reported a significant Ore Reserve update for the Wiluna Mining Centre in Western Australia as it transitions to underground mining and production of gold in doré and concentrate from a new flotation circuit.
The 2020 Ore Reserve estimate is based on the Mineral Resources announced on 5 November 2020 with depletion to 31 October 2020 and has been updated in accordance with the JORC Code 2012 edition.
This Ore Reserve update has included an assessment of:
- Underground mining at the Wiluna Mining Centre
- Surface stockpiles at Wiluna, Williamson, Matilda and Galaxy Mining Centres
- Retreatment of historical tailings
- Open pit mining potential at each of Wiluna, Lake Way (Williamson) and Galaxy Mining Centres
- Processing of free milling ore through the existing CIL circuit and sulphide ore through the 750ktpa Stage 1 Sulphide flotation plant due to be commissioned in October 2021
- A gold price of A$2,550/oz has been used for all Ore Reserve assessments
Executive Chair, Milan Jerkovic, said the large increase in underground Ore Reserves affirms the company’s “Under the Headframe” strategy to expand underground Ore Reserves through methodical infill drilling of Mineral Resources between previously mined areas to support near term production before progressively stepping out to expand Ore Reserves and production areas to support an expanded production rate.
“The 2020 Ore Reserve increase for Wiluna is the result of the focused efforts of our geological and mining teams over the past 18 months to grow our Resources, convert Inferred material to Indicated or Measured and to prepare for our transition to gold in concentrate production. As reported over the past year our geologists have made great progress to expand the Resources around existing underground infrastructure for a rapid and low-cost start to sulphide ore production,” Mr Jerkovic said.
“This Mineral Resource expansion has underpinned the 661koz underground Stage 1 Ore Reserve we announce today. This Ore Reserve is sufficient to support a +5 year operation at 750ktpa Stage 1 processing rates and provides a sound base upon which to further develop the Mineral Resources and Ore Reserves for the long life operation we expect Wiluna to be.
“Despite the Open Pit Ore Reserves at Wiluna reducing, we continue to investigate ways to bring this abundant, broad mineralization back to a reserve status in the coming years.
“Offsetting this reduction has been the strong improvement in the Wiltails Tailings Retreatment Project economics following additional Mineral Resource and metallurgical testwork which has expanded the Ore Reserve from 234koz to 579koz providing the opportunity to generate a steady, long term gold production stream over a 15-year life for the existing CIL processing plant.
“The potential for extensions to known Mineral Resources at Wiluna is considerable and so we will continue to maintain the momentum we have built to methodically infill drill the significant gaps between defined lodes, upgrade Inferred mineralization to Indicated or better and to plan for a productive and low cost mining operation.
“Our 2021 drilling programme will continue to target infilling the Mineral Resources, particularly in the Happy Jack, Bulletin and Essex areas with the intention to add 500koz to the Ore Reserve base for inclusion in the Stage 2 Feasibility Study.”
