Primary Gold records 72% rise in gold resource at Rustlers Roost
Primary Gold (ASX: PGO) has boosted its gold resource at Rustlers Roost by 72% to 1.3 million ounces of contained gold.
The Rustlers Roost resource now sits at 49.6 million tonnes grading 0.84 grams per tonne gold for 1.3 million ounces at 0.5 grams per tonne cut-off.
Situated in Australia’s Northern Territory, Rustlers Roost forms part of the company’s Mount Bundy gold project.
Including this latest Rustlers Roost resource, Mount Bundy gold resources now amount to 1.78 million ounces of contained gold.
The Mount Bundy project lies about 100km from Darwin and encompasses 1,500 square kilometres in tenements and are within the Pine Creek gold region where 14 million ounces of gold has been discovered.
Three deposits have been identified at the project including Rustler Roost and Quest 29 which are amenable to an open pit operation. The other deposit Toms Gully is more suited to an underground mine but has a higher grade currently averaging at 8.9 grams per tonne gold.
Primary Gold’s plan is to develop a large bulk tonnage operation with main feed coming from Rustlers Roost and supplemented by the Toms Gully high grade ore.
Pine Creek historical gold rush
Pine Creek is renowned for a historical gold rush during the late 1800s, with 15 mines operating in the area by the 1890s.
According to South Australian History, 75,000 ounces of gold had been produced in the region by 1915. However, gold mining petered out and was taken over by tin and wolfram production followed by uranium and iron ore during the 1960s and 1970s.
A short renaissance started in 1985 when Pine Creek Goldfields Ltd mining gold from its open pit mine. However, the mine has been shut down and filled.
Primary Gold selecting historical gold rush sites
In addition to the Mount Bundy project, Primary Gold possess the Coolgardie gold project in Western Australia’s goldfields which includes about 3,000 hectares with eight historical open pit mines.
The company claims the Coolgardie project has production ready resources of 200,000 ounces of contained gold and is targeting commissioning for final quarter of 2017.