Westgold Resources Limited (ASX:WGR) Upgrade Rover 1 Polymetallic Resource
Perth, July 28, 2011 AEST (ABN Newswire) - In preparation for moving forward with development studies, Westgold Resources Limited (
ASX:WGR) has spent the past year upgrading a significant portion of its predominantly Inferred Rover 1 resource to the Indicated category, to enable mining reserve estimates to be completed. In addition, Westgold has continued to drill test the main mineralised zones at Rover 1 down plunge, adding to the overall dimensions of the system. Westgold holds 100% rights to the Rover 1 Deposit.
Rover 1 is a poly-metallic deposit considered to be of IOCG (iron-oxide-copper-gold) genesis, and is predominantly a copper-gold deposit hosted by a high-grade magnetite and hematite ironstone.
Bonanza gold zones occur within the larger copper-gold ore system. Bismuth is generally associated with the higher grade gold mineralisation and the cobalt occurs separately in pyrite, both which have potential to add significant co-product value to the ores. This being the case, benchmarking of the ores to a gold equivalence is done for simplicity and comparability in reporting of resource estimates.
Significant success has been realised in achieving these outcomes. Using the same parameters as the previously announced maiden resource, the updated resource estimate shows an overall increase of 28% in tonnage, a decrease in gold equivalent grade of 8.7%, and an overall increase of 18% in gold equivalent ounces.
Infill drilling has improved geological domaining, allowing for a more robust estimate of the orebody. This has resulted in a 110% increase in the Indicated component of the resource, which will drive the next stage of the mining study, and allow for the definition of an initial mining reserve.
Ongoing review of the resource by the company has reinforced the importance of gold and copper as the primary mined and recovered commodities. Mining of copper/gold ore will entail recovery of significant cobalt and bismuth credits, which will substantially enhance the economics of the project.
Importantly based on the increased confidence of the Indicated resource and the focus on the higher grade gold and copper lodes, utilising a 2.5g/t Au and 1% Cu cut-off only, the resource contains 750Koz Au equivalent.
A key aspect of the mining study will be that the ounces per vertical metre (OVM), based on Au and Cu alone in the area subject to the previously announced scoping study, exceeds 1650 OVM. This metal profile compares favourably with other operating underground gold mines.
The process for Decline approval is advancing with initial baseline Flora, Fauna, Water and Waste Rock Characterisation studies having been completed in preparation for submission of a proposal to the Northern Territory regulators during the second half. Additional resource drilling of the Jupiter Deeps Zone will be undertaken from the underground development.
About Westgold Resources Limited
Westgold Resources Limited (ASX:WGX) is a dynamic and responsible explorer and developer of gold mines operating in the prolific goldfields of outback Western Australia.
Westgold typifies the world-leading mining technology, ingenuity and pioneering attitude that Australia's mining industry is renowned for by uniquely being the owner-operator of its mines and projects.
Our overall business has two main pillars - gold operations in the Murchison region of Western Australia and a specialised wholly-owned underground mining services arm - Westgold Mining Services.
We strive to create wealth for our shareholders with a respectful and grateful manner knowing we are the custodian of their assets and resources.
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