Evolution Mining Limited (ASX: EVN) has unveiled a significantly upgraded Mineral Resource estimate for its recently acquired Red Lake gold operation in Ontario, Canada.
Incorporating Evolution’s estimation methodology the new Red Lake Mineral Resource estimate is 48.08 million tonnes grading 7.10 grams per tonne for 11.0 million ounces gold.
Indicated and Inferred Mineral Resources are reported at 5.69 million ounces and 5.29 million ounces respectively.
Executive Chairman, Jake Klein, said this is materially higher than what was estimated during the due diligence which provided justification to proceed with the acquisition of the operation.
The estimate was completed over a five-month period whereby Evolution engaged Toronto-based mining consulting firm Roscoe Postle Associates Inc. (RPA) to undertake modelling work for the Red Lake and Campbell deposits. Mana Hill Consulting, a Brisbane based resource consulting firm, also assisted with revisions of the Cochenour and HG Young deposits.
Mr Klein said key drivers in the substantial resource increase are related to evaluating each mineral deposit at a wider range of cut-off grades than considered by prior owners.
This approach allows Evolution to unlock mineralised areas within the mine footprint that were never previously modelled due to not meeting the historically high cut-off grades,” Mr Klein said.
“Evolution’s approach to lowering operating cost assumptions at Red Lake (benchmarked against the company’s other underground operations as well as other similar scale operations) has enabled the inclusion of lower cut-off grades in this Mineral Resource update.”
Similar Mineral Resource increases were realised at Upper and Lower Red Lake, Lower Campbell and Cochenour.
Work has commenced on the estimation of the Red Lake Ore Reserves which is planned to be released with Evolution’s Annual Group Mineral Resources and Ore Reserves Statement in the March 2021 quarter. Ore Reserves will be estimated using Evolution’s gold price assumption of A$1,450 per ounce.
“This 11 million ounce Mineral Resource indicates that Red Lake has the potential to be the most transformative, value-creating opportunity in Evolution’s history,” Mr Klein said.
“It is a great example of applying a different lens to an opportunity and emerging with completely different results. The next steps will be to complete a new Ore Reserve estimate which we expect will result in a material upgrade to reserves and will present us the opportunity to re- imagine the future of the operation. We are very excited about the potential at Red Lake.”
