Hawthorn Resources (ASX: HAW) has delivered high-grade results from a major drilling program at its Anglo Saxon gold project within the Trouser Legs joint venture in Western Australia.
The 53-hole reverse circulation campaign for a total 7,846 metres aimed to infill and update the existing underground mineral resource estimate of 796,000 tonnes at 6.1 grams per tonne gold for 157,000 ounces.
Hawthorn reported “excellent continuity” in gold mineralisation and vein density at depth and along strike, with 19 discrete intervals grading more than 30g/t gold.
Best results were 1m at 63.67g/t from 126m, 1m at 85.76g/t from 94m, 1m at 60.12g/t from 104m, and 1m at 73.69g/t from 84m.
The new results complement bonanza grades in nearby historical holes that also form part of the existing resource estimate, where highlights were 3.5m at 222.2g/t from 127.5m, including 0.5m at 734g/t; 0.3m at 629.5g/t from 93m; and 0.47m at 209.5g/t from 90.61m.
When combined with current record gold prices, the Hawthorn believes the results underpin the potential for an expanded open pit as a viable alternative to underground mining at Anglo Saxon.
‘Compelling Low-Risk Option’
Hawthorn managing director Brian Thornton said the company and its joint venture partner Gel Resources (30% equity) were pleased with the progress at Anglo Saxon.
“The recent drilling results confirm our view that further development of Anglo Saxon is now a more compelling, low-risk option via a cut back and larger open pit, to expose the high-grade vein sets at depth and along strike,” he said.
“This strategy should be confirmed once the revised resource estimate is completed, followed by a pit optimisation and financial modelling using current mining, haulage, and processing costs and record gold prices.”
Completion of key benchmark reviews will guide any decision by the company to commence further open-pit mining operations.
Extensive Tenement Package
The Trouser Legs joint venture controls an extensive tenement package of mining licences, contiguous exploration licences, and miscellaneous licences at WA’s Pinjn Fault, which has been a historical producer of high-grade gold.
In March, the partners revisited an earlier mine optimisation study focused on an open-pit development to exploit the residual high-grade underground resource at Anglo Saxon using current mining, processing, and haulage cost inputs and prevailing gold prices.
This optimisation has helped Hawthorn in their ongoing review and discussions with third parties concerning the development of the Anglo Saxon resource aimed at maximising project returns and value for shareholders.
The process also highlighted the need to upgrade the existing MRE, and the JV partners have commissioned BMGS in Kalgoorlie to do so with the recent drill results, as well as re-run an open-pit optimisation.
