- 01Kokoseb drilling extends underground targets and confirms continuity.
- 02Hits include 15.5m at 6.53g/t gold.
- 03Underground target: up to 15Mt at 2–2.5g/t.
A six-rig diamond drilling campaign by Wia Gold (ASX: WIA) at its Kokoseb project in Namibia has demonstrated strong grade continuity and reinforced the discovery’s underground resource growth potential.
The Central Underground exploration target was extended 170 metres to the northeast and showed 300m of continuity to the southwest.
Drilling at the Intermediate and Deep High-Grade target also returned further positive results, while the Southern Underground target was found to continue down-plunge.
Highlight assays from each target were 15.5m at 6.53 grams per tonne gold from 499.5m including 3m at 27.93g/t and 20m at 2.7g/t gold from 544m including 3m at 5.39g/t (from the underground resource envelope) at Central Underground, 29m at 1.91g/t gold from 755m including 3m at 5.89g/t and 6m at 6.06g/t gold from 623m at Intermediate and Deep HG, and 18m at 2.78g/t gold from 606m including 3m at 4.64g/t, 9m at 2.45g/t gold from 675.7m including 3m at 6.17g/t at Southern Underground.
Project Economics
The Kokoseb deposit hosts a mineral resource estimate of 3.78 million ounces grading 1g/t gold, comprised of a 3.23Moz open pit resource including 2.01Moz in the Indicated category, and a 560,000oz maiden underground Inferred resource.
A definitive feasibility study released in August confirmed a maiden probable ore reserve of 1.95Moz (69.8 million tonnes at 0.87g/t gold) over an initial 14-year mine life, producing an average 150,000oz per annum over the first 10 years.
At a base case gold price of US$3,600/oz, the project is expected to deliver a post-tax NPV5% of US$1.2 billion and a 41% post-tax internal rate of return over a payback period of 1.8 years, for a pre-production capital cost of US$475 million.
Recent drilling results continue to support the potential for Wia to attain an underground exploration target at Kokoseb of up to 15Mt at grades between 2g/t and 2.5g/t gold.
Delivering Scale and Grade
Managing director Henk Diederichs said drilling continued to deliver the scale and grade needed to reinforce the opportunity emerging beneath the planned open pit at Kokoseb.
“Recent drilling has extended the Central Underground target by approximately 470m, while Southern Underground remains open at depth and continues to return encouraging widths and grades,” he said.
“Results from the Intermediate and Deep High-Grade target continue to highlight the broader underground potential of this project and infill drilling has further strengthened confidence in the continuity of mineralisation within the Central Underground resource envelope.
“At the same time, ongoing geological studies are improving our understanding of the controls on high-grade gold mineralisation and helping refine future growth opportunities and the knowledge we gain will be used to determine the extent of mineralisation.”
The company remains focused on advancing execution readiness activities and progressing the mining licence and environmental approval processes as it moves Kokoseb towards development.
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