Empire Resources (ASX: ERL) has commenced the second round of grade control drilling at the company’s Penny’s Find gold mine located 50km northeast of Kalgoorlie, WA.
The programme is designed to provide grade control information from 30m to 60m depth in the mine’s open pit. A total of 60 holes for 2,400 metres will be drilled on a 10m X 10m pattern at –60 degrees along the length of the high grade ore zone.
Empire’s Managing Director, Mr David Sargeant:
“The completion of the second round of grade control drilling will provide further strong confidence in the geological model being used for Penny’s Find. This second programme comes just over three months since open pit mining commenced.
The open pit is now accessing the higher grade part of the orebody providing an excellent production opportunity for Empire given the current high gold price of more than AUD$1600/oz.
We also believe there is substantial upside at Penny’s Find once a feasibility study into development of the underground resource has been completed. This along with exploration potential at depth bodes well for the long term future of the project.”
Upon completion of the grade control programme, the Reverse Circulation (RC) rig will drill six diamond pre-collars in preparation for further testing of the mine’s known underground resource.
Empire Resources holds a 60% direct interest in the Penny’s Find gold project with the remaining 40% interest held by unlisted Brimstone Resources Ltd.
ERL has been hauling ore to the Burbanks mills for all of August and will commence processing ore very shortly.