Barra Resources Ltd.'s scoping study for its Burbanks gold project in Western Australia identified the potential for shallow underground mining at the Birthday Gift and Main Lode gold mines.
The company said Sept. 23 that the project can be developed with no capital expenditure, other than modest working capital, to fund underground development launched from existing open pit and underground workings.
Barra is investigating right-to-mine style partnering arrangements to realize cash-flow to assist funding of ongoing exploration and development of its gold and cobalt assets, it noted.
The study is based on Burbanks indicated and inferred mineral resource of 1.2 million tonnes at 3.7 g/t gold containing 145,700 ounces of gold.
A 5,000-meter reverse circulation drilling program is scheduled to begin in October to infill and extend the Main Lode mineral resource both to the north and at depth.
Barra initiated the study to review potential mining options at Burbanks following the recent strength in gold prices that surpassed A$2,000 per ounce.
