Kirkalocka Gold

/Kirkalocka Gold
Kirkalocka Gold 2019-04-11T00:36:27+00:00

LOCATION

The Kirkalocka Gold Project is located 590 km NNE of Perth, 75km south of Mount Magnet in the Mid-West region of Western Australia.

BACKGROUND

The Kirkalocka Gold Project was built and operated by Equigold between 2002 and 2008. The project centered on the Curara Well gold deposit and during its six years of operation the project produced 283,000 ounces at an all in sustaining cost (AISC) of $ 476 per ounce.  Total ore mined from the Curara Well deposit was 6,585,455 tonnes at 1.47 g/t and 311,240 ounces. With the merger of Equigold and Lihir in 2008, the project was placed into care and maintenance and then sold to Mt Magnet South in 2009. After completing a full feasibility into the recommencement of the project, Mt Magnet South sold the project to Minjar Gold in 2013.  This occurred during a time when there was a down turn in the gold price and equity markets.

Adaman Resources acquired the Project in 2018 and has subsequently completed a BFS, secured A$55 million in project funding and is presently refurbishing and upgrading the site in readiness for production in December Quarter 2019.

KEY ASSETS

  • 2MT CIL Gold processing plant (currently being upgraded to 2.0MT as part of the plant refurbishment),
  • 110 person camp,
  • Site offices, warehouse, workshops, gold room and power house,
  • 9 Mining Leases, 12 Exploration Leases and 5 Prospecting leases (total 432 square kilometres),
  • 8 kilometer gravel air strip.

STATUS

Based on current Ore Reserves, Stage 1 Kirkalocka pit is designed to produce on average 135kp.a. ounces over a 6 year period, however, Adaman will look to optimise this production profile via contributions from satellite deposits (such as Snake Well), Resource upgrades and acquisition.

The Project is fully funded and refurbishment underway for a planned start to production in the December Quarter 2019. Current activities include refurbishment of the existing plant, installation of new SAG mill (expanding capacity to 2.5Mtpa), grade control drilling, pit dewatering and expansion of the village.

GEOLOGY & MINERALISATION

The Curara Well deposit is hosted by the Goldconda Formation, a 2 to 3 kilometres thick succession of mafic and ultramafic rocks interlayered with quartz-hematite banded iron formation in the northern and central parts of the Wydgee Fold Belt. Outcrop is poor, however, the local stratigraphy is interpreted to be a broad, folded sequence of basalt with narrow disconnected lenses of ultramafic rocks and strike continuous horizons of BIF with a major shear zone to the east of Curara Well.

Gold resources at Curara Well have been delineated along a strike length of approximately 1.75 kilometres and to a depth of approximately 500m following the main northeast trending high-grade shoot. A well-developed, mineralised laterite horizon exists along the entire strike, and was instrumental in the original discovery of the underlying, primary deposit.

The mine sequence is dominated by two lithologies: tonalite in the west and an amphibolite unit (east). Both units are mineralised as is their intrusive contact. Felsic quartz-porphyry dykes cross-cut the sequence and are also present as dykes parallel to that contact.

Gold mineralisation is associated with quartz-epidote–actinolite–feldspar-pyrite-chalcopyrite-gold veinlets which are controlled by a northwest plunging tonalite intrusive. Veinlet and gold distribution differ between the two hosts with an east-northeast plunging shoot control in amphibolite, and northeast trending veinlets within a north-northwest striking, steep east-dipping corridor in the tonalite.

Significant potential exists to grow Mineral Resources at Curara Well with mineralisation remaining open at depth, including the well-defined northeast plunging high-grade shoot. The underground potential of this shoot is demonstrated by the high-grade intercepts below the planned pit including:

  • 33m at 7.8g/t Au,
  • 24m at 7.7g/t Au,
  • 9m at 10.6g/t Au, and
  • 13m at 5.3g/t Au.

Regionally, Adaman as approximately 670 square kilometres of tenure (including Snake Well) covering approximately 120 kilometres of greenstone terrain prospective for Curara Well-style, Mount Magnet-style, and shear-hosted quartz lode-style gold mineralisation.