Aragon Resources Limited (ASX:AAG) Drilling To Recommence At Big Bell Mine
Perth, Feb 7, 2011 AEST (ABN Newswire) - Aragon Resources Limited (
ASX:AAG) ("Aragon") is pleased to advise that following on from the recent positive mine study results at the Big Bell Underground Mine, a planned 3,000 metre drill program is due to commence in the coming week. The Big Bell Mine, located at the Murchison Bell Goldfield of Central Murchison Gold Project ("CMGP") has a recently defined Probable Mining Reserve Estimate of 390,000 ounces of gold. When combined with the Probable Mining Reserve Estimate of 224,000 ounces at Golden Fingall the combined Initial Probable Mining Reserve Estimate for the CMGP is 614,000 ounces.
The current drill program is targeting the southern zone of the already substantial Identified Mineral Resource Estimate (JORC) of 5,161,000 tonnes @4.5g/t Au for 748,000 ounces and aims to expand the current underground reserve base.
Aragon holds a land position in the Central Murchison of 33,400 hectares including the three historically significant goldfields of Big Bell, Cuddingwarra and Day Dawn. Historic production from the Aragon land package totals 5 million ounces. The total estimated resource inventory within Aragon's tenure is 14,521,000 tonnes@ 4.2g/t Au containing 2.0 million ounces.
The previously announced mining study outcomes show that the Big Bell underground mine can become the backbone feedstock for a processing facility at the Central Murchison Project producing at approximately 500,000 tonnes per annum after an initial 18 month pre-production period. The study also shows the Golden Fingall mine to be in a position after a 2 year establishment period to produce high-grade ore at a rate of approximately 200,000 tonnes per annum. On a combined basis both underground mines can provide a feed of 700,000 tonnes per annum to a surface stockpile at the mines for an average cost of approximately A$400/oz.
This allows for an annual recoverable gold production of approximately 100,000oz per annum for an initial 6 year life with plenty of scope to extend. The aim of this current drill program is to test for further additions to the existing Big Bell Component of the reserve base.
Previously Announced Mine Study Results
Big Bell Underground Mine
The underground mining studies at Big Bell have been completed by Berrimil Services Pty Ltd and Mr. John Player (Senior Research Fellow - Geotechnical Engineering, West Australian School of Mines). Both consultants have extensive and direct operating experience at the Big Bell mining operation.
Pre-production capital and re-establishment costs are estimated to be A$20.1 million. This includes approximately A$9.7million for refurbishment and re-establishment of the mine, portal, decline and mine services. A further A$10.4 million is estimated for replacement mine fixed plant, services equipment and reticulation.
Mining only operating costs are estimated to be A$56/tonne of ore mined or A$465 per ounce for ore delivered to a surface stockpile at the mine. Sustaining Capital Development costs for the initial 2.895 million tonnes of probable reserve are estimated at A$33.8 million equating to an additional cost of A$11.70/t or A$96 per ounce.
Golden Fingall Underground Mine
The underground mining studies at Golden Fingall have been completed by Mining Plus. Aragon believes there is potential to significantly customise and improve on their outputs.
Pre-production capital and re-establishment costs are estimated at A$32.7 million. This includes approximately A$12.5 million for fixed plant and equipment (including dewatering) and A$20.2 million for a new decline to access ore production.
Mining only operating costs are estimated to be A$61.5/tonne of ore or A$241 per ounce for ore delivered to a surface stockpile at the mine.
Sustaining Capital Development costs for the initial 878,000 tonnes of probable reserve are estimated at A$26.3 million equating to an additional cost of A$30/t or A$117 per ounce.
In addition to achieving this solid foundation of underground reserves, Aragon continues to examine the numerous open pit remnant resource opportunities while maintaining dedicate exploration across each goldfield for new open pittable gold discoveries.
For the complete Aragon Resources Limited announcement including tables and image, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/65158-ASX-AAG-527927.pdf
About Aragon Resources Limited
Aragon Resources Limited (ASX:AAG) is an Australia-based gold, nickel and phosphate exploration company. The principal activity of the Company is the exploration of minerals. Aragon has exploration tenements in Western Australia and the Northern Territory.
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