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Egan Street increases Rothsay gold resources 31% to 401,000 ounces

Egan Street Resources Ltd. posted an updated resource estimate for its Rothsay gold project in Western Australia, with contained gold increasing 31% to 401,000 ounces.

The estimate includes the initial definition of resources for the Woodley's East hanging wall zone, comprising two separate lenses of mineralization totaling 22,000 ounces in inferred resources.

Rothsay hosts indicated and inferred resources totaling 1.4 million tonnes of ore at an average grade of 8.8 g/t, according to a May 14 release.

Egan Street noted that the current estimate uses a lower cutoff of 2.5 g/t of gold, while the estimate completed in late 2017 used a cutoff of 5.0 g/t of gold. The new cutoff is a result of ore sorting studies and a related reconfiguration of the proposed underground mining method.

An initial estimate of reserves and a definitive feasibility study are expected to be completed in the current quarter, and regional exploration is ongoing.