Westar Resources (ASX: WSR) has obtained outstanding gold and silver results of up to 40.7g/t Au and 214g/t Ag from recently returned 14 grab samples of mined stockpiles located at the historic Mindoolah Mining Centre in WA.
In addition, up to 1.7g/t Au and 16.1g/t Ag rock chip assays were received from three samples taken from quartz veins in modern- day open pits. The Mindoolah Mining Centre is part of the Company’s Mindoolah Project in Western Australia’s Murchison Mineral Field.
"We are very encouraged by these excellent initial results and, coupled with numerous yet to be tested historic workings and open pits, highlight the potential at the Mindoolah Mining Centre. We look forward to systematically evaluating the stockpiles and open pits, with immediate focus on determining the potential for an open pit cutback and possibly toll treating ore at nearby processing plants,” Executive Director, Lindsay Franker, said.
A first-pass field assessment of gold potential at the historic Mindoolah Mining Centre was completed in late March. Gold-rich quartz veins are reported to have been mined from numerous old workings dating back to the early 1900s and 1940s. In the 1980s, a series of shallow open pits were mined to target quartz veins hosting high grade gold. It is thought that the low gold price at the time, resulted in the premature discontinuation of open pit mining at Mindoolah. At today’s gold price, economic mineralisation may exist beginning at the existing pit floor level, allowing for a simple pit cutback. There are also over 200 individual stockpiles located at surface near some of the open pits, each representing one dump truck load.
Stockpile Results
A total of 14 grab samples were taken from stockpile areas near the two largest open pits, “Excelsior” and “Mindoolah Main Reef”.
The tenor of gold assays obtained clearly demonstrates that some of the stockpiles contain significant high-grade gold ore (with possible silver credits) and may present a commercial opportunity for the company.
Open Pit Results
Two of the largest open pits were visited. The “Mindoolah Main Reef” pit is approximately 400m long and 10m deep. Several remnant quartz veins, some up to 2m wide, protrude from the pit floor, two of which were sampled.
Although low grade, the presence of mineralised quartz veins within the pit, suggests they may extend at depth and/or along strike. Given the shallow nature of the existing open pit and the heavily weathered condition of the host rock, it should be relatively easy to expand mining with a cutback, assuming gold grades beneath are economically viable (again with potential silver credits).
Within the <30m deep Excelsior Pit, narrow quartz veins hosted by weathered granitoid were visible in the southern wall. A rock chip sample was taken but no significant assays returned, although the key zone of interest is likely underwater.
Next Steps
Following outstanding gold assay results, Westar is planning a systematic and representative sampling program targeting the +200 stockpiles. This includes first-pass tonnage estimation and initial metallurgical test work.
During recent visit to the two main open pits, only selected quartz veins were sampled, returning encouraging gold results from one quartz vein. There remain a number of smaller open pits and numerous old high-grade gold workings remain untested. A detailed sampling and mapping programme will commence once the historical data compilation is complete (in progress), including in-pit mapping to help improve understanding of controls on mineralisation. This will assist drill programme planning.
Ultimately it may be possible to carry out an open pit cutback and continue mining the quartz-hosted gold mineralisation along strike / at depth; this, combined with over 200 potentially gold-bearing stockpiles, may make the project attractive for toll treating or other profitable scenarios. The Tuckabianna gold processing plant, operated by Westgold Resources’ (ASX:WGX), is less than 100km from Mindoolah. Ramelius Resources (ASX:RMS), our current JV partner in the Mt Finnerty Gold Project, also has a processing plant in the region.