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Yundamindera Gold Project
Nex Metals has signed an agreement to earn a 70% managing interest in the Yundamindera Gold Project from Saracen Gold Mines Pty Ltd, a 100% owned subsidiary of Saracen Mineral Holdings Ltd. Under the terms of the agreement Nex can earn the 70% interest by spending $1.5M on the mining tenements within a 3 year time frame.
The project comprises 9 granted mining leases covering 46.2 km² with wide spread gold mineralisation present.
This gold project has many features that offer a unique opportunity for Nex. The company can spend the entry money on completing a detailed scoping study and potentially setting up and fast tracking a small and highly profitable goldmine with abundant potential for additional discoveries.
Some of these important features are:
- strong historical production figures
- no modern mining
- mineralisation occurring on and near surface
- a large dataset of 1777 drillholes containing 43,000 assays
- close spaced drilling from 10 x 10m to 20m x 20m
- initial favourable Kappes Cassady & Assoc. (expert metallurgical consultants) heap leach test work
- SOG pit optimisations and cost analysis
- the fact that the project has not been re optimised since the gold price has nearly tripled.
The Yundamindera gold mining centre is located approximately 65km southeast of Leonora and 45km north-east of the township of Kookynie, within the North-eastern Goldfields of Western Australia.
Gold was discovered at Yundamindera prior to 1899 and Maitland (1903) described the mines of the area (Landed at Last, Great Bonaparte, Maori Queen, Queen of the May and others) as mining auriferous quartz reefs hosted in granites.
At the height of activity the area had a population of about 3000 as well as a brewery and five hotels. Until the 1940s the mines in the area were worked intermittently, and a documented production is recorded of 73,700 t @ 19.3 g/t Au over the 7km strike length of the Western Line (MacKay and Schellman, 1989).
The current resource only covers about 800m of that 7km strike length, with excellent potential to expand the known resource. Mineralisation is found at the contact between a granodiorite pluton and a thin greenstone sequence in north-west trending east dipping quartz veins.
As well as fast tracking production on the existing mineralisation, Nex plans to evaluate the total mineralised strike length of the known intermittent workings with the aim of significantly expanding the known gold resource and believes at todays gold price ($1500 Aus ounce) a significant proportion of this could be economically developed.
The Yundamindera resource is hosted within a sheared granite. The maximum depth of drilling is no more than 70m from the surface. The defined resources are open at depth and along strike, and therefore there is excellent potential to add significant tonnage to the resource.
In 2002 Sons of Gwalia re-modelled the existing resource using Multiple Indicator Kriging and established the following JORC compliant mineral resource. The quantity and quality of the resource estimate is constrained by the lack of drilling at depth and along strike.
The diagrams above display the tenements being purchased (red & blue), the drilling on the tenements (black) and the early Sons of Gwalia pit optimisations (in blue) based on the then current gold price of AU$585. Note however, how the proposed pits (in blue) utilise all of the drilling at AU$585 and also there is no drilling between the deposits. Gold is currently worth in excess of AU$1,500 per ounce.
Additional to the Landed at Last mineralisation, on the eastern flank of the tenements, is another gold deposit called Pennyweight Point with resource figures of 71kt @ 2.55g/t gold.