High purity alumina developer Andromeda Metals (ASX: ADN) has announced an updated indicated and inferred gold resource for its Wudinna project in South Australia’s Eyre Peninsula.
New geological reinterpretation has led to an updated resource of 4.43 million tonnes at 1.5 grams per tonne gold for 211,000 ounces of the precious metal.
The revised resource includes the Barns, White Tank and Baggy Green deposits and comprises a 5% increase in contained gold and a 15% rise in resource tonnes.
Joint venture operator London-based Cobra Resources Plc undertook the resource upgrade, with the company planning an extensive exploration program at Baggy Creek and other targets during the latter half of this year.
“It is a very positive development to have Cobra Resources undertaking new exploration at the Wudinna gold project, while the current focus for Andromeda Metals remains the Poochera halloysite-kaolin project,” Andromeda managing director James Marsh said.
Wudinna gold project
Wudinna spans 2,027 square kilometres in the Gawler Craton with Cobra earning a 75% interest in the project after buying out Lady Alice Mines Pty Ltd earlier this year.
“I am delighted with the updated resource estimate for this key project in Cobra’s portfolio,” Cobra managing director Craig Moulton said.
“This in crease in the JORC mineral resource based on this new interpretation, and without new drilling data, confirms our belief that there is significant value to be unlocked from this exciting project,” he added.
According to Cobra, the tenements are underexplored, but a large number of untested anomalies have been identified along with drill ready targets.
Previous exploration at the known deposits has generated notable intersections of 12m at 3.38g/t gold from 67m (Barns), 7m at 10.03g/t gold from 63m (White Tank), and 8m at 4.79g/t gold from 34m (Baggy Green).
To secure the 75% stake, $5 million must be spent on exploration over six years.
Poochera halloysite-kaolin project
While Cobra firms up the gold potential at Widunna, Andromeda has been advancing the Poochera project where it is looking to ship halloysite-kaolin direct to customers as well as producing a high purity alumina for the LED and lithium-ion battery markets.
Andromeda is earning a 75% holding in the project which has a 9.7Mt halloysite JORC resource.
A third round of high purity alumina testing during the March quarter confirmed a 4N (99.99%) purity was achievable using Poochera halloysite-kaolin using only a single purification stage.
Drilling at the project is underway to boost the resource and test other targets, along with a scoping study.
By midday, shares in Andromeda were steady at $0.007.