Anglo Australian Resources NL (ASX: AAR) has unveiled an updated JORC compliant Mineral Resource Estimate (MRE) for its flagship 100%‐owned Mandilla Gold Project (MGP), located 70km south of Kalgoorlie in Western Australia.
The MRE, which was prepared by independent consultants Cube Consulting in accordance with the JORC Code (2012 Edition), covers the Mandilla East and Mandilla South deposits and totals 19.8Mt at 1.0g/t Au for 664.6koz of contained gold.
Managing Director, Marc Ducler, coming just over two months since the release of the maiden MRE for the MGP in late May 2021, this substantial increase to the MRE provides strong encouragement that AAR can continue to grow its Mineral Resource inventory as it progresses its strategy to develop a long‐term gold business in the Kalgoorlie region based around its Mandilla and Feysville Gold Projects.
Achieving a 33% increase in the Mandilla Resource so quickly is a fantastic result. We have added 164,000oz by including assays from just 7,700m of RC and diamond drilling, which represents an outstanding return on our investment and bodes extremely well for further growth,” Mr Ducler said.
“With the drill rigs once again turning at Mandilla, I am confident we will be able to grow our already sizeable gold Resource inventory on the doorstep of Kalgoorlie even further.
“This significant upgrade to the recently published maiden MRE is testament to the success of our exploration and technical team’s efforts and gives us the confidence to continue an aggressive drilling effort aimed at supporting the development of an integrated Kalgoorlie‐based gold business.
“The recently completed structural geological review has highlighted the considerable scope for further growth and exploration upside, based on extensional, in‐fill and regional exploration drilling. We are genuinely encouraged by the opportunities that exist to grow the known deposits both along strike and at depth, and to make new discoveries within the broader mineralised trend.
“With a cash balance of around $9.8 million, we are in a strong position to embark on the next significant exploration program of up to 55,000m of diamond, RC and air‐core drilling across our two Goldfields‐based projects at Mandilla and Feysville.”
A significant increase in Mineral Resources has resulted from the successful in‐fill and extensional drilling which has extended the mineralisation at the MGP by 150m to the south and by 250m to the south‐east.
The growing geological knowledge base being developed by the AAR technical team, which has been bolstered by the findings of the recent structural geological review, positions the Company for further growth with the recent commencement of a new 55,000m drilling program.
The MRE was estimated using a 0.39 g/t Au cut‐off and is constrained within pit shells using a gold price of A$2,500 per ounce (consistent with the maiden MRE).