Empire Resources Ltd. said Dec. 13 that a new underground resource estimate for its 60%-owned Penny's Find gold mine in Western Australia defined an inventory of 56,000 ounces of gold within 248,000 tonnes of ore grading 7.04 g/t of gold.
Of the total resource, 38,000 ounces of gold are in the indicated category and 18,000 ounces are classified as inferred.
The company noted that the updated estimate only includes mineralization considered economically viable for underground mining and uses a lower cutoff of 1.5 g/t of gold. The analysis also incorporates data from drill results released in November.
Underground resources extend from the planned base of current open pit operations at Penny's Find to at least 250 meters below surface, with mineralization remaining open at depth. Deeper drilling will be required to further expand underground resources, assuming a positive final feasibility study for the project.
The underground feasibility study is expected to be completed by the end of the first quarter of 2018.
Brimstone Resources Ltd. holds the remaining 40% interest in the Penny's Find property.
