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DAMPIER GOLD LIMITED - ASX: DAU
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Description
Dampier Gold is positioning itself to be among the next generation of Australian gold producers. The Company is evaluting and exploring ~700km² of the Plutonic-Marymia Greenstone Belt in central Western Australia with a view to near-term gold production. The project currently hosts defined Mineral Resources of 529,000 ounces of gold.
Reserves and Resources
The tenement package acquired by Dampier currently comprises 80 granted mineral titles (Mining Leases, Exploration Licences and Prospecting Licences) and 6 mining lease applications hosting 40 former open pits that have collectively produced some 580,000 ounces of gold. The package contains an Indicated and Inferred Resource of 529,200 ounces of gold reported by Barrick and Dampier Gold in accordance with the JORC Code², of which 373,700 ounces is designated as underground and 155,500 ounces is designated as open pit. Of these, the most significant resource is found at the undeveloped Trident deposit (326,100 oz Au).
Trident
Dampier Gold, in conjunction with global consulting firm Runge Limited, completed a new Mineral Resource estimate for the Trident deposit in November 2010. This estimate is based entirely on drilling completed by the previous owners of the project and incorporates a revised interpretation of the mineralisation. This work resulted in a new Indicated and Inferred Resource reported at a 3.0g/t Au lower cut-off grade of 1,859,000t at 5.5g/t Au for 326,100 ounces¹, representing an increase of over 100% in contained gold from the earlier 2005 estimate.
The high grade zone making up the majority of this resource occurs at depths of 120 to 250 metres below surface and had previously been viewed as an underground development opportunity. However, lower grade mineralisation extends to surface, and Dampier intends to re-evaluate Trident as an open-pit development transitioning to underground mining at a later stage.
K1 and K2 area
The K1 and K2-K3 deposits formed the backbone of the Marymia mining operations during the mid-to late 1990s.
In April 2011 Dampier Gold in conjunction with its consultants Runge, completed updated resource estimates for K1 and K2-K3 deposits. K1 now has a total resource of 0.75Mt at 2.4g/t Au for 58,000 oz1, whilst K2-K3 hosts a total resource of 0.73Mt at 4.1g/t Au for 98,000 oz1. The new open-pit Mineral Resource estimates are reported at a 0.5g/t Au lower cut-off grade and are also constrained by A$1,600 per ounce conceptual pit shell. Underground resources are reported at a 3g/t lower cut-off grade.
These updated estimates continue Dampier’s methodical review of previous models generated for the significant gold deposits within the Plutonic Dome project area. The new resource estimates for K1 and K2-K3 are based on drilling completed by the previous owners and by Dampier in 2010 and incorporate updated interpretations of the mineralisation.
Initial pit optimisation studies indicate that the K1 and K2-K3 resources reported here have strong potential for conversion to mineable reserves. These deposits are currently the subject of a Scoping Study to determine the viability of re-establishing a mining centre in this area. Dampier has framework terms of agreement with Barrick to treat any such ore through Barrick’s Plutonic processing facility.
Budgie Corridor
The Budgie Corridor (Cinnamon prospects) is an extensive geochemically anomalous gold zone located along the contact between mafic-ultramafic and metasedimentary sequences in the central area of the Plutonic Well greenstone belt.
The only production from within the Budgie Corridor was from a shallow laterite pit (now part of the Cinnamon prospect) which was mined in 1997.
Primary gold mineralisation along the Budgie Corridor is hosted almost exclusively within weakly sheared conglomerates. Supergene enrichment has resulted in localised thickened mineralised zones and improved gold grades about the base of complete oxidation and top of fresh rock interfaces. While insufficient drilling has been completed at this stage, Dampier is encouraged by the extent, grade and thickness of these intersections.
Dampier considers the potential of the Budgie Corridor for large-tonnage gold discoveries to be high given the broad surface geochemical anomaly associated with the defined deposits and paucity of deeper drilling outside of the immediate Cinnamon and Cobalt deposit areas. In particular, Dampier considers the lightly drill-tested strike extents to the southwest of Budgie-Cinnamon area towards Triple P to be particularly prospective.
Mine For
gold
Location of operation(s)
Western Australia
Address
Level 3 8 Colin St
WEST PERTH, WA, Australia
Phone
(61 8) 6424 9700
Website
Last Updated
19/5/2011
The data on Australian Shares.com is intended as a guide only and is provided purely as an indication of what information can be found through official announcements. Data on this website should not be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. The publisher (Intaanetto Pty Ltd) will not be held liable for any loss arising from the use of this website.
