Empire Resources lifts gold grade in fourth Penny’s Find toll treatment

Gold miner Empire Resources (ASX: ERL) has recovered higher gold grades in the latest toll treatment campaign for its 60%-owned Penny’s Find project in Western Australia’s goldfields.

The company today reported that processing data from the fourth toll treatment campaign, which commenced just over a week ago at the nearby Lakewood Mill, has indicated an average head grade of 7.06 grams per tonne of gold.

This represents about an 8% rise from Empire’s previously announced average head grade of 6.55g/t of gold in March.

Within the first six days of operation, around 40% of the ore had been processed with 73kg of gold recovered. About 18,000 dry tonnes of ore remain to be processed.

According to Empire, the mill has achieved an overall recovery of 92.7%, with around two-thirds of the gold recovered by a gravity separation circuit.

On Monday, four gravity gold bars were poured and more than 57.5kg of dore was despatched to the Perth Mint for refining, Empire reported.

A final processing summary for this latest toll treatment campaign is expected to be announced in May once the Perth Mint and mill reconciliations have been finalised.

Empire has a 60% interest in the Penny’s Find gold project and operates it in joint venture with Brimstone Resources, which holds the remaining 40% stake.

The joint venture is currently undertaking a feasibility study looking into the potential of advancing the gold mine from its current open pit operation to underground.

Last year, Empire reported an underground resource for Penny’s Find of 248,000t grading at 7.04g/t of gold for 56,000oz.

The company is targeting a 10-year mine life for the underground operation at Penny’s Find.

A maiden underground reserve estimate is expected to be announced shortly as part of the feasibility study.

Shares in Empire were up 6.7% to A$0.016 on the news by midday trade.