Perth, Dec 1, 2008 AEST (ABN Newswire) - Australian gold producer, Focus Minerals Ltd (ASX:FML), is pleased to announce a significant upgrade to gold reserves at the Tindal’s Mining Centre, located at Coolgardie, Western Australia.
HIGHLIGHTS
- 32% increase in pre-mine Probable Ore Reserve at Perseverance Gold deposit to 100,000 ounces (initial Reserve was 76,000 ounces).
- 14,500 ounces mined to date from Perseverance deposit, leaving approximately 85,500 ounces in-ground
- 28,700oz Probable Ore Reserve defined at nearby Countess Deposit - development underway for a short decline and strike drive to access Countess from the existing Empress workings.
- November/December milling campaign currently underway with expected production of 7,500 ounces from a blend of Perseverance and Countess ore.
The pre-mine ore reserve for the Perseverance Deposit has increased to 100,000 ounces, representing a 32% increase on the initial Ore Reserve estimate of 76,000oz outlined in April this year and providing a substantial boost to the Perseverance mine life, which now extends out to approximately two years.
Since commissioning of the Perseverance deposit, approximately 14,500 ounces of gold has been mined with 10,500 ounces of gold produced through milling campaigns at the nearby Greenfields processing plant.
The latest milling campaign, which commenced on November 17, is expected to run for 32 days and will, for the first time, involve the blending of Countess ore together with stoping ore from the Perseverance deposit.
This represents the first stage in the planned expansion of the project pipeline to include surrounding deposits within the tenement area.
Countess Reserve Estimate
In addition to the Perseverance upgrade, a Probable Reserve of 28,700 ounces has been defined through recent geological modeling of the nearby Countess Deposit. This is the first gold reserve estimate outside of the Perseverance deposit and provides Focus with a strong pipeline for continued full-scale production.
A Pre-Feasibility Study was undertaken on the Countess Resource which was aimed at determining the economic viability of the new resource and the synergies of mining Countess in conjunction with the Perseverance deposit. The Countess reserve is expected to increase as further drilling is carried out both up and down plunge.
Commenting on the upgrades, Focus' Managing Director Mr Peter Williams said: "We are very pleased to increase the Perseverance Reserve, as this clearly forms the foundation of our short-term production outlook. In addition, the development of the Countess deposit is a milestone achievement, as this is the first stage of the development of our extensive project pipeline.
"The definition and development of further deposits within our tenement area is crucial to our future growth aspirations and the continuing excellent revenue streams from our existing production assets will be used to fund ongoing development strategies within the area," added Mr Williams.
COMPETENT PERSON'S STATEMENT
The information in this report relating to Resources and Reserves are based on work supervised by Mr Paul Griffin who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Griffin has the relevant experience as a "Competent Person" as defined in the 2004 edition of the Australasian Code for Reporting of Mineral Resources and Ore Reserves in relation to the mineralisation being reported. Mr Griffin is a consulting mining engineer for Focus Minerals Ltd and consents to the inclusion of the material in the form and content in which it appears.
About Focus Minerals Ltd
With over 3.8Moz of Mineral Resource, Focus Minerals Limited (ASX:FML) has a highly strategic portfolio of assets across Australia's two leading gold producing districts – the Kalgoorlie/Coolgardie belt and Laverton – and the financial muscle to continue to unlock further potential for growth.
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