- Paterson Resources (PSL) has announced mineral resource estimates totalling 134,000 ounces for its Lucky Draw and Hackneys Creek gold prospects
- The estimates were completed by independent consultant Kerrin Allwood from geomodelling based on historical drilling data
- Renison Goldfields conducted over 17,000 metres of diamond drilling across the two prospects, along with substantial trenching and RC drilling in the 90s
- A wireframe model was constructed using resource estimation software to paint a picture of what lies underground
- All resources are classified as inferred, and in-fill and extension drilling will be required to upgrade any estimates to indicated
- Both deposits will likely lend themselves to open-pit mining, given the width and near-surface location of the mineralisation
- Paterson Resources has been in a trading halt since September – shares remain locked up at 0.3 cents each
Paterson Resources (PSL) has announced mineral resource estimates totalling 134,000 ounces for its Lucky Draw and Hackneys Creek gold prospects at Burraga, NSW.
The estimates were completed by independent consultant Kerrin Allwood from geomodelling.
The data
The estimates were compiled using historical data from trenching, reverse circulation (RC) drilling and diamond drilling (DD) carried out by Renison Goldfields (RGC) from 1986 until 1993 and by Werrie Gold in 1999.
RGC conducted over 17,000 metres of diamond drilling across the two prospects, along with substantial trenching and RC drilling. A wireframe model was constructed using resource estimation software to paint a picture of what lies underground.
All resources are classified as inferred, and in-fill and extension drilling will be required to upgrade any estimates to indicated.
The way forward
Most of the drilling at Lucky Draw went to a depth around 100 metres. Hackney’s Creek went to around 250 metres. Both deposits lend themselves to open-pit mining, given the width and near-surface location of the mineralisation.
Both deposits indicate metallurgical recovery around 90 per cent or more, meaning the company would be getting its money’s worth should it succeed in getting the gold out of the ground.
Given the current gold prices, Paterson believes the Lucky Draw prospect would suit a mine slightly deeper than the one proposed by RGC in the 1990s.
More drilling and resource definition will be required to nail down exactly what kind of resource Paterson is sitting on.
But it’s clear the company hopes it’s sitting on a gold mine.
Paterson Resources has been in a trading halt since September — shares remain locked up at 0.3 cents each.