Focus Minerals Limited (ASX:FML) Activities And Exploration Updates On Coolgardie Gold Project, Three Mile Hill Refurbishment And Developments At The Mount Project
Perth, Nov 26, 2009 AEST (ABN Newswire) - Gold producer Focus Minerals (ASX:FML) is pleased to provide an update on activities at its Coolgardie Gold Project, including progress updates on the Three Mile Hill mill refurbishment, developments at the Mount Project and an update on exploration and resource extension drilling activities in the broader Tindals Mining Centre area.
These activities all form part of the Company's aim of achieving substantially increased gold production in the coming years, with the Three Mile Hill processing plant to underpin production of 80,000 ounces in 2010 and +100,000 ounces from 2011 onwards.
Three Mile Hill Refurbishment - Imminent Completion
Focus commenced the refurbishment of its 100%-owned Three Mile Hill gold plant in March this year with an aim to commission the 1.2Mtpa plant by the end of calendar year 2009.
The Company is pleased to report that excellent progress has been made and the project is now approaching practical completion, well within the scheduled timeframe.
This includes all major equipment now installed with systematic testing currently being carried out before full commissioning can take place in December 2009.
Focus completed dry commissioning of the crusher circuit in early November. The crushers are presently working to produce a surplus of crushed stocks for the commencement of wet commissioning for the Three Mile Hill gold plant in December.
Currently also undergoing wet commissioning is the leach tank circuit with water being pumped through all tanks, pumps and piping systems. It is expected that the ball mill, which is still having minor piping and services work completed, will commence initial commissioning operations in early December.
Minor work such as the testing of electrical wiring, piping and installation of services still remains in most areas, but it is rapidly approaching completion for a December commissioning.
Mill Spare Parts
In October this year approximately A$4m was allocated from an A$8m capital raising to purchase significant spares with long lead times for Three Mile Hill.
A large proportion of the long lead items and critical spares have been ordered, with some items already delivered to site or being held as consignment stock by local suppliers. The remainder of the outstanding spares and long lead items are expected to be delivered during the coming months.
The Mount Project - Exploration Decline Confirms Grade and Structure
The 350,000 ounce Mount Project, which lies 80km south of Focus' Tindals Mining Centre at Coolgardie, will play a key role in lifting the Company's production profile as the Three Mile Hill mill comes into full operation in December.
After securing all necessary mining permits and environmental approvals in September this year, Focus has made significant progress at the Mount, including the completion of a 140m exploration decline, which has confirmed both the grade and geological structure of the deposit, paving the way for further development activities.
The decline was also successful in reaching the targeted German Lode. The intersection of the German lode has exceeded expectations with face grades during the initial cross cut of 13.0 g/t.
A 110m strike drive has commenced and to date over 10 metres has been advanced along strike in a north-south direction, with face grades averaging over 8.0 g/t with ore widths of approximately 2.0 metres.
-------------------------------------------------------Face Size (m) Ore true width Face Grade-------------------------------------------------------330 Main South 1 3.5 x 3.5 2.8 m 13.46 g/t330 Main South 2 3.5 x 3.5 2.3 m 10.89 g/t330 Main South 3 3.5 x 3.5 2.8 m 8.24 g/t330 Main North 1 3.5 x 3.5 2.4 m 3.26 g/t330 Main North 2 3.5 x 3.5 2.3 m 11.33 g/t330 Main North 3 3.5 x 3.5 2.2 m 0.7 g/t-------------------------------------------------------
Exploration Drilling - Three Rigs Now in Operation
Focus now has a total of three drilling rigs operating at site as part of the Company's aggressive resource definition and extensional programs.
A surface RC drill rig has arrived on site and has commenced drilling at the Big Blow Resource. The purpose of the first program is for resource definition for open pit planning purposes. Following this, the drill rig will move to the Empress Alicia orebody located adjacent to the Tindal's Pit, where it will carry out a mix of resource definition and resource extension drilling on this deposit.
A second surface multipurpose drill rig has also been ordered and is expected to commence on the 1st of December. This rig will complete follow-up geotechnical drilling at Big Blow and then proceed to a program of deep holes below the current Big Blow Resource. It will then move onto exploration and geophysical targets in the greater Tindal's area.
There are presently two drill rigs working underground in the Tindal's mining centre, where recent analysis of geophysical work has produced some attractive targets in and around Perseverance. Testing of these targets will be incorporated into the ongoing drilling programs.
Focus is confident that the current drilling campaign will help to delineate additional resources and will announce results from the various programs in due course.
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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