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- Indicated resource increased by 160%
- Significant sulphide upside potential identified
- Oxide heap leachable Indicated resource increased to 24,300oz
- Mine design and evaluation underway to ascertain restart economics
Broken Hill Gold (ASX: BH6) has taken a big step towards the restart of the Vertigo deposit in South Australia with a significant mineral resources estimate (MRE) upgrade.
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Vertigo is contained within the company’s White Dam gold project located 80 km west of Broken Hill.
The Vertigo results represent the first of three oxide gold resources to be recalculated based on the recent infill and resource expansion drilling undertaken by Broken Hill Gold.
The company is now drilling the shallow oxide hosted gold mineralisation at Hannaford East before moving on to test the Vertigo Deeps sulphide gold-copper target, Rolling oxide gold zone and then returning to the Icebreaker oxide and sulphide gold-copper targets.
“The Vertigo resource update is the first of what we anticipate to be multiple future updates at White Dam as our aggressive drill program continues,” MD, Matthew Boyes, said.
“I am also particularly interested to see results from the CIL leach test work underway and receive the first round of preliminary mining physicals from the pit designs and scheduling for the potential oxide heap leach restart.
“The real story developing here at White Dam is the sulphide gold potential this system contains. We know from cyanide leach work previously carried out that nearly all the gold is recoverable from a finely ground (120μm) sample, similar to standard CIL circuits all over Australia.
“We now have three major targets to follow up; 1) Icebreaker 2) Vertigo sulphide, which I am confident we will demonstrate has significant open pit potential, and 3) Hannaford sulphide, which has excellent gold grades identified in previous drilling directly below the pit floor, and has never been systematically drilled.”
A second rig is now arriving at site, allowing a quick ramp up of drilling progress, the definition of the remaining oxide resources and the expansion of the sulphide resources.
“We know we have around 55,000 ounces of gold in mineral resource at Vertigo already with the grade increasing as we go deeper and I am confident that White Dam will demonstrate the potential to deliver significant gold.”
BH6 was up 3.33% at 6.8¢. Mkt cap $80.13M.
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