Hardey Resources (ASX: HDY) has unveiled a maiden resource of 69,000 ounces of contained gold for its 100%-owned Grace gold project in Western Australia.
The mineral resource is 1.59 million tonnes grading 1.35 grams per tonne gold for the 69,000 contained ounces.
According to Hardey, the mineralisation remains open along strike and at depth.
The company has devised a conceptual exploration target, with the upper estimate sitting at 2.8mt grading 1.3g/t gold for a further 117,000 contained ounces.
“The maiden inferred mineral resource is the first step in building a robust economic gold resource at Grace,” Hardy executive director Terence Clee stated.
He said the resource modelling had enabled the company to better target its upcoming drill programs to expand the resource.
Despite the low gold grades, Hardey published a review of its tenements late last month which included rock chips assaying as high as 52.3g/t gold.
The company claims the review indicates the potential for higher grade mineralisation along strike and at depth from the maiden resource.
This potential is enhanced by the project’s proximity to Newcrest’s Telfer Mine which contains 32 million ounces of gold and 1 billion tonnes of copper.
Situated about 25km from the Telfer mine, Grace comprises one granted exploration and five prospecting licences with three exploration applications.
In addition to Grace, Hardey owns several other projects and is currently focussed on exploring its Pilbara tenements for the conglomerate-style gold mineralisation that has numerous miners in the region fast-tracking exploration to discover if they are sitting on actual Witwatersrand-style gold.
These tenements include three exploration licences: Bellary, Hamersley, and Elsie North.
Preliminary field exploration at Bellary picked up six gold nuggets, with rock chip sampling carried out in the December quarter last year returning up to 3.89% copper and 0.9g/t gold.
Formerly Elysium Resources, the company name was changed to Hardey late last year after Elysium acquired Hardey.
Hardey’s share price rose more than 14% in trade today to sit at A$0.008 by early afternoon.