Primary Gold reports 72% increase in Mt Bundy Gold Project resources

Recent drilling campaign lifts resource estimate 1.3M ounces

Primary Gold Limited (ASX: PGO) has reported a 72% increase in Resources at the Rustlers Roost gold deposit in the Northern Territory on the back of a successful drilling campaign.

The resources increased to 49.6 Mt at 0.84 g/t Au for 1,332,000 ounces including 36.6 Mt @ 0.87 g/t gold Indicated and 12.990 Mt @ 0.73 g/t gold Inferred.

Rustlers Roost forms part of the Mount Bundy Gold Project in the Northern Territory, Australia. The total gold Resource at the Mt Bundy project has now increased to 1,780,000 ounces.

Primary Gold Managing Director, Garry Mills, said the resource increase was the result of the recently completed and highly successful exploration drill program at Rustlers Roost, which was the first drill program in more than 20 years. Drilling both confirmed and validated the gold distribution previously encountered by historical drilling at the deposit.

Importantly the Rustlers Roost deposit remains open both along strike and depth, with further exploration planned at the conclusion of the current wet season in 2018.

“This is an outstanding result for the company and highlights the significant potential at the Rustlers Roost deposit,” Mr Mills said.

“What is most pleasing is that the pit optimisation study for the Rustlers Roost deposit indicates more than 900,000 oz of gold will fall into a single pit, with a strip ratio of 1:1. This would make the Rustlers Roost deposit one of the lowest strip ratio gold deposits in Australia.”

Mr Mills said the increase in the size of the deposit is central to the Pre-Feasibility Study that which is underway and due for completion in 1H18.