Drilling reveals more high grade gold at CRB’s tailings project

Published at Mar 26, 2015, in Mining

The first results from a drilling programme at Carbine Resources Ltd’s (ASX:CRB) Mount Morgan mine show more high grade gold that could boost its JORC resource size.

CRB is developing an 8.35Mt JORC compliant tailings resource at the Mount Morgan Gold and Copper Mine on the Queensland coast.

The tailings are the by products of 100 years of mining activity at the site, and at Mount Morgan still contain high-grade gold, copper and pyrite.

To expand this resource as the company presses toward production, CRB commissioned a 35 hole drilling programme at Mount Morgan and assays from the first eight holes have now been released showing significant grades and widths.

More high grade gold in tailings for CRB

The average grade struck in CRB’s first eight holes was 2.12g/t gold with the best intercept being 17m at 3.63g/t gold, ending in mineralisation.

That result was achieved at drill hole Mun18, which was located outside of the existing JORC resource boundary at Mount Morgan.

CRB says this could lead to an increase in the 8.35Mt JORC resource with further drilling.

The results from all eight drill holes releases so far show continuity across the tested zone with gold grades carried over the full width of intersection without barren zones.

Further results should be released soon by CRB and will help define targets for more exploration.

Pyrite sales to increase from Mount Morgan

CRB has negotiated a Memorandum of Understanding (MOU) with a second customer for future pyrite offtake from its Mount Morgan project.

Jainson Labs India has now signed on along with Talana Limited to access pyrite mined from Mount Morgan by CRB and exported through the nearby Port of Gladstone.

CRB is targeting a production rate of between 100,000 and 200,000t per year with an FOB cost of US$100 a tonne.

Pyrite is a key ingredient in the production of sulphuric acid, whose prime commercial market is fertiliser.

Between these two MOU offtake deals, CRB can access markets in China, India and Europe.

CRB also says the sale of this material will help with its site remediation efforts, as pyrite is largely responsible for environmental legacy issues at Mount Morgan owing to historical mining operations.

Whilst CRB is assisting with remediation efforts, it is not responsible for the existing environmental problems or the impact of past mining activities.

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