Empire Resources cheers more high-grade gold at Penny’s Find

Empire Resources ASX ERL Penny's Find gold mine open pit drill blast
Drill blast rig at Penny's Find gold mine.

Gold miner Empire Resources (ASX: ERL) has discovered more high-grade gold while drilling at its Penny’s Find mine, north-east of Kalgoorlie in Western Australia.

This latest drilling campaign comprised 15 reverse circulation holes and was designed to provide grade control information from a depth of 60m to the planned 85m bottom of the open pit mine.

Drilling returned numerous high-grade gold intersections from the lower part of the planned open pit mining operation, Empire Resources reported.

Highlights included 9m at 20.6 grams per tonne gold from a depth of 12m, 7m at 12.5 g/t gold from 20m, and 7m at 12.14 g/t gold from 24m.

Empire Resources managing director David Sargeant said these high-grade drilling results were “as expected”.

“We are looking forward in the next couple of months to solid gold production through the Lakewood toll treatment facility at Kalgoorlie,” he said.

Mining at Penny’s Find is currently at a depth of 55m, with Empire Resources already well advanced in its feasibility studies to take the mining operations from open pit to underground.

“These results also bode well for the completion of our underground feasibility study as they indicate grades in the fresh part of the ore body are robust at depth,” Sargeant added.

Earlier this month, Empire Resources reported a 45% boost to the Penny’s Find underground resource, which now sits at 248,000 tonnes grading 7.04g/t gold for 56,000 gold ounces.

This new resource is located under the current open pit operation, extending 250m below the surface and remaining open at depth.

“As the resource remains open at depth, further deep drilling will be required from underground, assuming the final feasibility is positive,” Sargeant said at the time of the resource announcement.

The company holds a 60% stake in the Penny’s Find project with unlisted Brimstone Resources holding the remaining 40% interest.

Shares in Empire Resources were up 24% on the news by midday trade.

Danica has extensive experience writing and editing business news in the Oceanic and Southeast Asian regions. She has written across a range of industries including oil and gas, mining, energy, science and research, retail and travel. Danica has covered small and large cap companies listed on the Australian, Singapore, Hong Kong, Indian, London and Toronto exchanges.