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Siren Gold (ASX:SNG) to begin Reefton scoping study

Mining
ASX:SNG      MCAP $12.06M
28 October 2021 14:15 (AEST)

Drilling at Alexander River. Source: Siren Gold

Siren Gold (SNG) has contracted GR Engineering Services (GRES) to complete a scoping study for its Reefton gold project in New Zealand’s South Island.

The scoping study will essentially examine the potential to establish a processing plant at the project. GRES will examine the likely optimum treatment route for the processing facility which will treat various gold ores historically produced on the Reefton Goldfield.

The Reefton Goldfield was discovered in 1866 and produced over two million ounces of gold at an average recovered grade of 16 grams per tonne (g/t) from 84 historical mines. Most underground mining ceased by the early 1940s but the Blackwater mine closed in 1951.

Reefton consists of four key projects, including Alexander River, Big River, Reefton South and Lyell, which have all been a focus for exploration work.

Managing Director Brian Rodan commented on the goldfield and commencement of the scoping study.

“Prior to Siren Gold listing on the ASX in October last year, there had only been a very limited amount of exploration drilling completed historically over the entire Reefton Goldfield,” Managing Director Brian Rodan said.

“Siren has now completed more than 8000 metres of diamond drilling on its Alexander River and Big River projects and is planning on expanding and expediting the current exploration program going forward.

“I think it makes for an exciting Christmas and It will certainly make for a very exciting period early next year when the scoping study is completed,” Mr Rodan added.

The scoping study will begin next month and is expected to be completed in May 2022. Once it’s completed, Siren Gold will engage the relevant government authorities to commence the approvals process for the construction of the processing plant.

Company shares were down 5.41 per cent to trade at 35 cents at 1:52 pm AEDT.

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