Geko Operations Update
ASX Announcement 21 January 2019
Coolgardie Minerals Limited (ASX: CM1) is pleased to announce that mining of Stage Two—representing the higher-grade oxide component of the orebody—has now commenced at its Geko mine.
As announced on 17 December 2018, a revised three-stage mine plan for Geko was developed and executed to optimise future mining. Stage One was completed in late December with ore above the grade of 2.75g/t Au sold to Northern Star as announced on 31 December 2018 and the remainder stockpiled.
The following physicals are expected from the mining of Stage Two:
- Ore mined: 260,000 tonnes
- Average mined grade: 2.23g/t Au
- Contained gold: 18,640 ozs
The oxide ore mined from Stage Two with a grade above 2.75g/t Au (approximately 50,000 tonnes) will be offered to Northern Star Resources(Northern Star) for sale under the previously announced Ore Sale Agreement.
Ore sale negotiations and toll milling options for the remaining ore on the mined stockpile are underway with other parties.
Stage Three, which will mine the remainder of the orebody (circa 1.3m tonnes at 1.7 g/t Au containing 71,000 ozs) is subject to the successful completion of Stage Two and securing a Toll Milling Agreement acceptable to the company.
Geko Project
Stage 2 Mining Plan – Long Section
MARKET ANNOUNCEMENT
Geko Project Update
ASX Announcement 31 December 2018
Coolgardie Minerals Limited (ASX: CM1) (CM1 or the Company) is pleased to announce that the third Parcel of oxide ore from the Geko pit has been sold to Northern Star Resources for net revenue of $1.668 million (excl GST).
The sold oxide ore represented part of the high-grade supergene zone located in the western area of the pit. The final physical results were 7,980 tonnes at 5.94g/t Au sold for contained gold of 1524oz. The 35% increase in the mined grade above the Mining Reserve grade of 4.40g/t to 5.94g/t Au in this ore zone is a direct result of a comprehensive review conducted by the Company following poor reconciliation of the mined grade of the Geko operations in November and early December.
The review resulted in:
- The appointment of Garry Mills as Geko Project Manager in December.
- RC “grade control” drill spacing being halved from 12m line spacing with 11 m hole spacings to 6m line spacing with 5.5m hole spacings which better defined the ore zones.
- A collaborative mining review with the mining contractor SMS Mining Services (SMS) to reduce mining dilution within the ore zones.
Further grade control drilling is underway to determine the extent of the remaining supergene zone in this area as well as defining the Stage 2 oxide ore zones for mining in January 2019.
The receipt of net revenue of $1.668 million (excl GST) from Northern Star Resources has satisfied the first milestone (to receive net proceeds of at least $1.5 million in cash from the sale of Geko ore before 7 January 2019) under the Company’s revised arrangements with SMS as described in the Company’s announcement (ASX: 17 December 2018). Northern Star Resources has the option to purchase an additional circa 90,000 tonnes of oxide ore with a grade above 2.75g/t Au before 31 March 2019.
Exploration on Geko Mining Lease outside of the current Geko Pit (Contributing JV: CM1 70% / Bulletin Resources 30%):
In addition to the sale of the high-grade ore, CM1 has undertaken RC drilling immediately west of the western perimeter of the Geko pit to determine whether the high-grade supergene zone extends outside the current pit design. The four vertical RC holes completed (ASX: 23 November 2018) intersected mineralisation in three holes with the best intersection of 5m @ 19.09 g/t Au in hole GGCO431 from 37m down hole.
All significant results are included in Table 1:
Geko Exploration Drilling Proves New Structural Interpretation
ASX Announcement 5 December 2018
Coolgardie Minerals Limited (ASX: CM1) is pleased to announce that the first Reverse Circulation (RC) hole GKRCP2 to test the new structural interpretation at its Geko project intersected significant gold mineralisation.
The results are the first from CM1’s initial four-hole exploration drilling program at Geko which commenced on 23 November to test a new, highly prospective gold mineralisation zone which may have the potential to extend the known resource.
Significant results from GKRCP2 include:
10m @ 2.62g/t Au from 136m downhole (approximately true width) including:
- 2m @ 4.51 g/t Au from 144m downhole
- 1m @ 8.66 g/t Au from 140m downhole
- 1m @ 6.93 g/t Au from 136m downhole.
With a further intersection of:
2m @ 2.03 g/t Au from 150m downhole.
Drilling on two of the remaining three RC holes have now been completed with results pending.
Coolgardie Minerals Limited Managing Director, Bradd Granville said:
The initial results are very significant for the Geko resource extensions and for the company’s greater tenement portfolio.
The grade of the intersection is significantly higher than the average grade of 1.8g/t Au within the pit reserves which may suggest that the orebody’s grade increases at depth and to the west. The new geological interpretation of the Bullabulling region, which has now been confirmed, illustrates the underexplored potential of the area. Regional drilling to test further targets will commence early in CY2019.
The drilling program follows the results and recommendations of the recent 3D geological map interpretation of the Geko resource, identifying highly prospective extensions of the Geko deposit.
ABOUT COOLGARDIE MINERALS LIMITED
Coolgardie Minerals Limited (CM1) was established in 2010 and is a near-term gold producer with over 549km2 of tenements surrounding the Bullabulling Gold Project in the proven gold-producing districts near Coolgardie, Western Australia. The CM1 tenements comprise of the Geko Gold Project, First Find, Endeavour, Bungarra, Sunchaser-Reservoir and Ubini.
The exceptional location offers immediate access to state of the art infrastructure and expertise including Geological Services, Drilling Contractors, Assay Laboratories supported with key elements such as water, power and rail running directly through the substantial landholdings.
In addition to surrounding the 3.2 Million ounce Bullabulling deposit, the compelling attraction to this unique area is that it holds significant high-grade potential, proven through recent exploration successes with additional outstanding targets ready to be tested.
The significant value proposition identified by CM1 lies beneath the shallow surface cover that will continue to be systematically explored along strike and along the highly prospective “structural paradise” that has been identified by some the industry’s leading professionals.
An impressive inventory of intellectual property has been compiled over a period of 5 years of extensive geological mapping, soil sampling and ground gravity surveys that provides CM1 with a unique opportunity and a strong foundation for growth.
As a result of the quality work completed to date, CM1 is now extremely well positioned moving onward and upward with both drill-ready gold targets and a collection of enticing early stage prospects that will be the central driving force of the company.
Neil Warburton (Assoc. MinEng WASM, MAusIMM, FAICD) Non-Executive Chairman Neil has worked within the mining industry his entire career in roles ranging from underground miner through to senior mining engineer to executive and non-executive directorships managing large mining and contracting companies. He has over 37 years of experience in all areas of mining operations. Over the period 2000-2012, Neil held senior positions with Barminco Limited culminating in being the Chief Executive Officer from August 2007 to March 2012. Prior to joining Barminco, Neil held several senior corporate positions included serving as Managing Director of Coolgardie Gold NL from 1990 to 1995. Neil is a graduate of the Western Australia School of Mines with an Associate Degree in Mining Engineering. He is a Fellow of the Australian Institute of Company Directors (FAICD), Member of the Australian Institute of Mining and Metallurgy (MAusIMM), Chairman of the Australian Mining and Prospectors Hall of Fame Foundation, Councillor of the Western Australian School of Mines Alumni association and serves as a director on several smaller private companies. | |
Bradd Granville Managing Director Bradd has over 25 years of experience in the industry with a specific focus in Business Management commencing in the Pilbara area of Western Australia. As the Operations Manager of a North Western national service and contracting company, he oversaw the facilitation & support that his company provided to the Oil/Gas and Mining industry throughout the region. The emphasis on gold came when he accepted the position of General Manager of Momentum Australia and thereafter was directly responsible for the acquisition, recommencement and operation, and final divestment of the Minjar Gold Mine. In 2010 Bradd became a founding Director of Coolgardie Minerals and at that initial phase simultaneously held the position of Resource Development Manager. This additional role was held until he was elected Managing Director. During this latter period, he has also held Director position in White Gold Kaolin and Grace Mining. | |
Paul Jago Non-Executive Director Paul studied Mining Engineering at the WA School of Mines in Kalgoorlie with 25 years' experience in the Mining Industry. Paul has had extensive experience in gold mining focused particularly in Western Australia with a significant period at the Superpit in Kalgoorlie managing all of the mining engineering planning and related technical functions of the organisation. Other gold mines in WA include Ora Banda, Bronzewing and Jundee where the latter two also included involvement in the design and commissioning of the sites. He similarly participated in the design and construction of the Cawse Nickel mine. Paul was the Project Manager in the re-establishment of the Minjar Gold Mine and was also involved in the design and construction of the Penjom gold mine in Malaysia. Consultancy in technical and operational wise have focussed particularly on WA gold mines. Other consultant responsibilities include tendering and project management undertaken on behalf of a number of earthmoving contractors, and while principally in gold has included work in the Pilbara on the Jimblebar iron ore mine. | |
Greg Martin Non-Executive Director Greg brings energy and enthusiasm to the Board, mixed with a solid foundation in finance and corporate governance. Greg is a qualified Financial Planner and holds a current Triannual certificate. He has an extensive and varied mining and business background. He has been the Company Secretary of a derivative hedge fund and has over 25 years of experience in domestic and international mining. Early in Greg’s career, he worked for a short period in Wiluna to obtain his drill and blast qualifications. Greg then progressed his management career working for the Roche Brothers at Mt Brockman in the Pilbara as the first iron ore mining contractors in the Pilbara. To further expand his career, Greg moved to Tanami Gold to train Indigenous Australian’s in all aspects of mining from drill and blast to plant operation. Throughout Greg’s career, he has had experience in the negotiation of Native Title between Indigenous Australian’s and mining companies. His success in these negotiations is his ability to build strong relationships with all people; be it internal and external stakeholders, suppliers, or the community. Mixed with Greg’s business acumen, is a strong sense of active community leadership, whether it be in his son’s school or as coach of the local football team. With this extensive experience, Greg understands the need for swift, considered, and legally founded decision making, which ensures that Greg is a strong addition to the Coolgardie Minerals Limited Board. | |
Tony Middleton (BE, MBA FIE (Aust)) Non-Executive Director Tony holds a Bachelor of Engineering and a Master of Business Administration from the University of Western Australia and Company Director Diploma from the University of New England. He was Managing Director of Advanced Engine Components Ltd (AEC), a West Australian company listed on the Australian Stock Exchange. Tony held senior management positions with WA government authorities including his previous position of Chairman and Chief Executive Officer of Transperth. He has also worked on several major water supply infrastructures and consultancy projects in Australia and overseas and lectured at the University of Western Australia. He is a Fellow of the Institution of Engineers (Australia) and past National Chairman and a fellow of the Chartered Institute of Logistics and Transport in Australia. |
