Spectrum Metals Limited (ASX: SPX) has announced a maiden JORC 2012 Mineral Resource Estimate at the Penny West Gold Project in Western Australia totalling 799,000 tonnes at 13.8 g/t Au for 355,500 oz of contained gold.
The company’s Managing Director Paul Adams said approximately 75% of Resources is at an Indicated status (Indicated resources total 268,000 oz Au at a grade of 17.8 g/t Au), with the Penny North Indicated component grading 18.6 g/t Au for 247,000 oz Au.
The project benefits from the shallow depth of the Resource which has been delineated from 80m to 320m below surface.
Spectrum is extremely pleased to be publishing this Maiden Resource only eight months from discovery of the Penny North Lode,” Mr Adams said.
“At an all-in discovery cost of $10 per ounce this has been a very exciting year for all stake holders in Spectrum and we anticipate the further rapid growth of this gold system. Planned drilling will also aim to bring the Magenta and Columbia prospects to resource status.”
Spectrum has recently been diamond drilling at Penny North to provide further confidence to the resource area and at depth to test extensions to mineralisation.
Diamond drilling is currently being completed with site geologists geologically, geotechnically and geochemically (pXRF) logging the core.
Mr Adams said any future mining of the Resource is likely to be via underground mining and therefore the resource has been modelled with a 2.0 g/t Au cut off.
Early diamond drilling shows a competent rock mass with exceptional geotechnical properties. Preliminary metallurgical studies indicate that excellent recoveries can be expected.