OZZ Resources reveals maiden resource for Maguires with ‘significant’ upside potential
Recharge Metals listed on the ASX earlier this month after raising $5 million in an IPO to advance its copper projects in WA.
Perth-based OZZ Resources (ASX: OZZ) has released its maiden JORC-compliant mineral resource of a contained 21,632 ounces of gold at its Maguires deposit, one of five in the company’s portfolio.
Maguires is an advanced target where historical drilling has returned 6m at 18.6 grams per tonne gold, 7m at 8.7g/t and 6m at 11.6g/t.
Maguires, 50km north of Cue, is one of three projects the company holds in the Cue-Meekatharra region.
The resource sits at 312,000 tonnes at 2.15g/t.
Of the contained gold, 15,599oz (72% of the total) is in the indicated category, the remaining 6,036oz being in the inferred category.
This follows 4,300m of reverse circulation drilling by OZZ Resources in August at the Old prospect.
Resource is near surface
The company’s gold projects are located in the vicinity of established mining centres — Cue, Leonora, Meekatharra and Mt Magnet — and are all close to existing treatment plants with the company planning to toll treat all its ore, which it has said previously will enable it to maintain a tight register.
In fact, Maguires is located in the vicinity of what the company says are several third-party owned operating gold plants.
The company described the initial resource as a “strong foundation for growth in a tier-one mining district”.
Managing director Jonathan Lea said the maiden resource estimate represented a great start to the company’s plans to establish a significant resource inventory in the Cue-Meekatharra area, which he describes as a “highly-endowed and very active mining district”.
“We have been able to deliver a solid, near-surface gold resource containing around 22,000 troy ounces at an attractive grade after just one drilling program.”
Exploration will also target parallel structure
He said there is also “significant potential” in the parallel Maguires Reward structure.
More drilling is planned at Maguires in early 2022.
Another project in the Murchison goldfield is Rabbit Bore where there are relics of historic mining but no records of production.
This project is located 25km from the Bottle Dump prospect owned by Odyssey Gold (ASX: ODY) where visible gold has been intersected.
At Wardarbie South, 75km northwest of Meekatharra, there is a cluster of old shafts but no production records have been found.
The fourth project is Mt Davis, 20km north of Leonora, and 5km from the 4.1Moz King of the Hills gold mine worked by Red 5 (ASX: RED) and 25km from the now closed Sons of Gwalia mine.
OZZ’s other project is Peterwangy, 40km southeast of Mullewa, which was in 1868 the site of Western Australia’s first gold rush. No drilling has been completed there.