Niuminco Group strikes bonanza gold at Edie Creek

Niuminco Group ASX NIU bonanza gold Edie Creek
Niuminco Group has recovered gold grading up to 83.3 grams per tonne from a new vein within its Edie Creek operation in Papua New Guinea.

Niuminco Group (ASX: NIU) has struck bonanza gold at the Ingopae area of its Edie Creek operation in Papua New Guinea.

Bulk sampling of the vein and processing of the material over three days produced 7 ounces of gold and 6.1oz of silver, with gold grading up to 83.3 grams per tonne recovered.

The newly discovered gold vein is about 200m from the company’s operational camp at the project and remains open along strike and at depth.

“This vein, which appears to be one of a series of parallel veins, further indicates the historical evidence of increasing grade in the Edie Creek systems as you move deeper down towards bedrock,” Niuminco managing director Tracey Lake said.

“We look forward to further sampling results from this area in the coming days whilst we continue tot develop and mine the Edie Lode and Surmans veins system,” Ms Lake added.

Edie gold operation

During the June quarter, Niuminco processed 374t of wet material at Edie and achieved an average grade of 2.01g/t to generate 24.2oz gold and 23.4oz silver.

Niuminco achieved quarterly revenue of $40,495 from sales of the precious metals.

During August, Niuminco reported it had achieved its highest monthly production since it began pilot mining in 2014.

Between 1 August and 23 August, Niuminco processed 653t of wet material at Edie at an average grade of 0.9g/t gold.

Niuminco anticipates grades will increase at depth, with a 0.5t sample from on Surmans vein about 15m below surface returning 8g/t gold.

The record monthly production generated 18.7oz gold and 16.5oz silver.

Niuminco is currently focused on boosting its processing plant throughput by maintaining and upgrading its equipment and increasing its exploration work.

The company is ramping up mining at the project to achieve up to 60t per day.

By early morning trade, shares in Niuminco were steady at $0.001.

Lorna has more than 10 years' experience as a finance journalist and editor. She has written for numerous industry publications reporting on various sectors, including: resources, energy, construction, biotech, pharma, science and technology, agriculture, and chemicals. Specialising in resources, Lorna has also covered a myriad of small and large cap ASX and dual-listed stocks.