Primary Gold Limited (ASX: PGO) has identified significant gold values during a sampling programme across two tailings storage facilities at its Toms Gully site within the Mount Bundy Project in the Northern Territory.
The company reported an average grade determined from the 23 sample programme of 2.18 g/t Au for TSF1 with grades exceeding 3 g/t Au, and 0.72 g/t Au for TSF2.
Managing Director, Garry Mills, said the results highlight significant concentrations of gold in the Tailings Storage Facilities at good grades which may potentially lead to an economically viable, low cost retreatment operation that can generate cash flow as a supplement to primary feed once operations are recommissioned at Mt Bundy.
“There are of course many steps to get to this decision, however, we are encouraged by these initial results,” Mr Mills said.
“Our next steps are to carry out additional metallurgical testing to provide clarity around recoverable grade especially in relation to TSF1. Dependent on positive results, we will then work towards resource estimation.
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The surface areas of the tailings facilities are approximately 280m x 220m (TSF1) and 280m x 300m (TSF2). The depth, estimated by the costeans varies up to 3m.
The Tom’s Gully mine initially operated as an open pit mine from 1988 – 1991 and as an underground operation from 2005 – 2007. The two tailings storage facilities were built in the natural topographic lows near the mine and infilled by residue products from the local ore processing plant. Tailings materials are distributed as sub-horizontal layers across the dams forming stratiform structure of the gold mineralisation.
Following sampling results, Primary will undertake detailed metallurgical tests of the tailings. Based on positive results from the metallurgical tests, Primary Gold said it will then seek to undertake resource definition drilling.
