Gold explorer Kairos Minerals (ASX: KAI) has rewarded shareholders with the best possible way by announcing it has boosted the gold resource at its Pilbara gold project in Western Australia.
The project and its major gold deposit, Mt York, are 90km south-east of Port Hedland in the west Pilbara with Kairos currently wielding 1,158 square kilometres of tenure in the region.
Kairos said that its mineral resource for all its deposits that make up the Pilbara gold project has increased to 14.4 million tonnes at 1.3 grams per tonne for 643,000 ounces of contained gold.
Possibly the most attractive aspect for investors is that the company isn’t done yet on the exploration front and says there is “strong potential for further growth.”
Kairos shares jumped 16% higher on the news and were trading at $0.044 in early morning trade on the ASX.
The exploration results and subsequent resource upgrade mean that Kairos’ position as a significant player in the Pilbara is “cemented” according to Kairos executive chairman Terry Topping.
“This is a great result which firmly cements Kairos’ position as a significant player in the Pilbara gold scene. The resource remains open in most directions, and there is clear potential to add further ounces both along strike and at depth – including the opportunity to target higher grade zones at depth,” said Mr Topping.
Progress over time
Kairos acquired the Pilbara project, which includes the Mt York deposit, back in mid-2016, and quickly established a maiden JORC resource for Mt York of 135,000oz contained gold based on a thorough evaluation of the historical work and a reinterpretation of the geology.
Less than three months later Kairos had grown the Mt York resource to 258,000oz of contained gold.
If looking at its indicated and inferred mineral resource estimate at Mt York in isolation, Kairos reports that the Mt York gold deposit now stands at 11.3Mt grading 1.34g/t for 486,000oz of contained gold.
Kairos said today’s latest “significant” increase in the mineral resource at Mt York to 486,000oz contained gold stemmed largely from a reinterpretation of the deposit geology based on results from the highly successful extensional drilling program completed late last year.
The results also confirmed that Main Hill, Breccia Hill and indeed Gossan Hill are all part of a single continuous gold mineralised system rather than a series of separate “pods” as previously thought.
Today’s resource increase indicates further exploration will continue to yield additional gold ounces given that the geology underlying Mt York remains open in most directions.
“I am confident that we can continue to grow it [Mt York] rapidly – establishing a gold project of significant scale and potential right on the doorstep of a major new lithium mining centre at Pilgangoora,” said Mr Topping.
Kairos’s project tenure is situated immediately east of Pilbara Minerals and Altura Mining’s lithium projects, which are currently under construction.
The Pilbara region has been the subject of a recent gold rush of sorts, despite being hailed as a historic hotspot for iron ore. The region has seen gold explorers of all shapes and sizes trudging off into the field, with Novo Resources (TSXV: NVO) and its partner Artemis Resources (ASX: ARV) said to be at the forefront of the stampede into Pilbara’s newly discovered gold potential.
With Kairos publishing resource-expansive exploration results as they have done today, the fledgeling gold explorer could well be joining its larger peers at Pilbara’s golden production table in the foreseeable future.