Following the production of its first gold bar, Empire Resources (ASX:ERL) is looking forward to sustained momentum in 2018.
ERL’s Penny’s Find mine delivered the company maiden revenues with its first gold pour, and is expected to generate revenues in the vicinity of A$30 million in its first 12 months.
Things have been ticking along nicely for ERL, with its latest round of drilling instilling confidence in the ERL team to move ahead with a final underground feasibility study (UFS).
The results from the latest round of drilling confirm high-grade gold mineralisation that could lead to a potential underground extension of the open pit gold mine.
The company is looking to prove up its untapped potential through this underground feasibility study, which is expected to be completed in the next few months.
With gold mineralisation open at depth, there is good chance that ERL will be able to add to the current Indicated and Inferred Resource of 170,[email protected]/t Au.
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ERL has been shoring up its operations offsite as well.
The most notable development is a MoU with Poseidon Nickel to evaluate the option of processing Penny’s Find gold ore through Poseidon’s Black Swan Operations gold processing facility. The MoU would provide ERL with considerable cost savings.
With production now commenced, partnerships in the bag and healthy looking drilling results, the $11 million capped Kalgoorlie explorer could have a bumper year next year.