Venus Metals upgrades Bellchambers gold resource
Venus Metals is negotiating a mine gate sales agreement with Rox Resources for potential ore from the Bellchambers deposit.
Venus Metals Corporation (ASX: VMC) has announced an upgrade to the gold resource estimate of its Bellchambers deposit, located within the Sandstone gold project in Western Australia.
Following recent reverse circulation (RC) drilling at the deposit, the explorer has increased the estimate to 722,000 tonnes grading at 1.31 grams per tonne gold for 30,500 ounces, with 22,100oz classified in the indicated category.
The new total represents a 35% increase in tonnages and 40% in ounces at a 0.5g/t cut-off grade, compared to the previous resource reported in 2020.
Venus says interpretation of the geology and mineralisation of Bellchambers is ongoing and additional RC and diamond drilling programs are planned to further define the mineralisation at depth.
Recent drilling results
The latest highlights from the drilling campaign contributing to the upgrade include: 34 metres at 1.25g/t gold from 160m including 11m at 2.93g/t; 1m at 9.47g/t from 178m; 25m at 1.19g/t from 86m including 4m at 2.06g/t; and 17m at 1.16g/t from 155m including 4m at 2.12g/t gold.
The drilling program targeted the depth continuation of the up to 30m wide and steeply plunging core of the southern mineralised domain outlined in the Bellchambers 2020 resource model, as well as a single hole drilled at the Range View gold prospect.
Venus has confirmed the mineralised zone was traced to a vertical depth of 175m below surface and the deposit remains open at depth.
Mine gate sales agreement
Venus has agreed with Rox Resources (ASX: RXL) to negotiate a mine gate sales agreement for any potential ore from the Bellchambers deposit on a ‘best endeavours’ basis.
This follows the deal announced last week regarding Venus selling each of its interests in the Youanmi gold joint venture projects to partner Rox.
Under the agreement, Rox would acquire Venus’ 30% stake in OYG, its 45% interest in the Youanmi and Currans Find JVs, and its 50% holding in the Venus Metals JV.
Venus still retains its 90% stake in the Sandstone Bellchambers deposit as well as interests in other projects including the Youanmi vanadium and base metals projects, Bridgetown Greenbushes East lithium project, Marvel Loch East rare earths project, Henderson lithium-gold-nickel project and the Mangaroon rare earths project.