Brazilian parameters for Agincourt development

05 February 2006 | 02:55 Code : 7821 Geoscience events
The Wiluna gold miner's managing director Peter Bowler told the focus for...
AGINCOURT Resources is aiming to identify around 500,000 ounces at its Andorinhas gold project in Brazil by the end of year, putting it in a position to push the button on the project by mid-next year.
The Wiluna gold miner's managing director Peter Bowler told the focus for 2006 would be build the resource base up to a scale that is within striking distance of a viable development."We've got 240,000 ounces in resources now and 130,000 ounces of reserves, we just need to increase that to a stage where we can start seriously looking at development," Bowler said."By the end of calendar year 2006 we aim to be closing in the 500,000 ounce resource figure."Preliminary mining studies incorporate an underground and open pit operation, with metallurgical testwork indicating the ore is free milling and gold extractions of 95% can be achieved with conventional CIL.Agincourt believes there is potential to increase the total resources of Andorinhas, which was discovered by CVRD in the 1970s, above the magic million mark. "There's already been a feasibility done on the project, so we'll be re-optimising it as the results roll in from a 5000m diamond drilling program," Bowler said."We need to re-optimise the feasibility study to see if will support a standalone operation. Building a plant would take at least a year, we might be in the position to make a decision to proceed, if it's feasible, around the end of June next year."First phase exploration at the project has reportedly identified a new gold anomaly, with rock chips from the outcrop returning an average grade of 8 grams per tonne of gold and a maximum grade at 24.8gpt.Agincourt said it had identified several other gossanous outcrops – assay results are pending.The project covers an area of 200 square kilometres and is located in the state of Para in northern Brazil.Shares in Agincourt hit a 52-week high of $1.90 in March before slipping to a 52-week low of $1.15 in June. The stock was off 0.5c (0.3%) during the days trade to close at $1.54.

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