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Empire Resources has the potential to add mine life at Penny’s Find

Empire Resources has the potential to add mine life at Penny’s Find

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An independent assessment of Empire Resources (ASX: ERL) Penny’s Find gold deposit has indicated the potential to extend the project’s mine life through a new underground mining on completion of the open pit operation. The deposit is located 50 kilometres north-east of Kalgoorlie in Western Australia.

Geotechnical findings are based on a JORC compliant indicated and inferred gold resource of 170,000 tonnes grading 5.4 grams per tonne gold beneath the scheduled pit floor. ERL will be completing a prefeasibility study with a view to confirming the economic viability of mining the underground resource.

Commenting on these developments, ERL’s Managing Director, David Sargeant said, “The results of the geotechnical study are very encouraging and indicate the real possibility of extending the mine life to at least three years with the prospect of any further exploration success leading to an even longer mine life”.

In the interim, Sergeant noted that a road diversion at the project had taken longer than initially anticipated but it was expected to be finalised with all necessary approvals to hand within days, allowing mining of the open pit to proceed.

Importantly, a preliminary underground mine design had already been initiated to ensure it was able to mesh smoothly with the open pit mining operation. The following is a design of how such an initiative could be executed.

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Confirmation of a mine life extension could provide share price momentum, and perhaps this accounts for the company’s shares opening approximately 6.5% higher on Monday morning.

However, it should be noted that share price trends should not be used as the basis for an investment decision, and independent financial advice should be sought if considering speculative mining stocks such as Empire Resources.