- Shallow, high-grade gold mineralisation confirmed at Cloudkicker.
- Better-than-expected grades and widths intersected.
- Located adjacent to operating mine.
- Mining of caprock ore already underway.
New Murchison Gold (ASX:NMG) is fast-tracking mining at the Cloudkicker deposit in Western Australia after it hit high-grade gold intercepts in recent grade control and resource definition drilling programs.
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Current programs have returned positive assay results that confirm the shallow, high-grade gold mineralisation present at Cloudkicker, producing higher grade and better widths than seen in the recent resource estimation.
“We are very pleased to report these high-grade results that will likely increase the grade and tonnage within the Cloudkicker deposit from the initial modelling,” New Murchison CEO Alex Passmore said Tuesday.
“The deposit is within the footprint of our existing operations (mineralisation strikes up to the margin of our final waste dump design) and so provides relatively easy additional ounces to be brought into our production profile.
“Production from Cloudkicker can be brought online with very little additional resourcing on site and so presents a high return project.
“Mining has commenced, and first caprock ore is to be crushed in September.”
Adjacent to the existing Crown Prince gold mine open pit, Cloudlicker was included in the M51/886 mining approval, allowing for mining to start immediately.
Multiple standout assay results included 54.8 grams per tonne (g/t) gold at 58m, 52.6 g/t gold in a separate hole at 59m and 38.3 g/t at 59m. High-grade shallow intercepts in the caprock were intercepted, including 16.6 g/t at 5m. The latest drill logging and assays will be incorporated in the Cloudkicker modelling and will be used to update the deposit’s resource estimation.
The new estimate will be used to update the Cloudkicker mine design and Cloudkicker open pit mining schedule. Mining has commenced at Cloudkicker, and the pit is conservatively expected to add circa 20,000 ounces of gold in ore to the company’s production profile over the coming 12 to 18 months.
NMG closed Tuesday up +10%. Mkt cap $478.03M.
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