Commencement of Major Drilling Program
Highlights
- Committed to 60,000m of drilling between now and December 2011 on flagship LKK Project
- Targeting initial reserves by December 2011 and first production by late 2012
- Program fully funded from existing cash reserves
- Delineation program has commenced at Kurnalpi project area with 12,000m of drilling at the Brilliant deposit
- Drilling will move to double shifts as soon as practical
- Second phase will comprise a 53 hole program at Lindsays project area
Carrick Gold Limited (ASX code:CRK) is pleased to confirm that drilling has commenced on the Company's Brilliiant deposit at Kurnalpi, which is one of three project areas making up the flagship LKK Project.
Kurnalpi comprises four deposits: Brilliant, Sparkle, Dazzle and Half Way Hill. Brilliant is the largest of these, and will be the focus of the first round of drilling, comprising around 12,000m. To date a total of 157km of drilling has been conducted at Kurnalpi, of which 44% is reverse circulation (RC) and 5% diamond core.
The current Resource Statement has origins dating back to 2004, and was calculated using a polygonal, arithmetic average method an outdated method that is unable to be built on for Reserve estimation. As a first step the new management team, which has been recruited since the end of January 2011, has been working toward delivery of a new Resource estimate. The management team is in the process of creating a new validated database, from which it will create its own geological interpretations and ultimately block models.
The company expects to have a revised Mineral Resource estimate and an initial ore Reserve for the Brilliant Deposit (Kurnalpi) by early August 2011. Revised estimates for Lindsays are expected by mid September 2011, and for Kalpini in early October 2011.
This drilling is designed to take the Resource from being predominantly in the Inferred category to the Indicated category. The addition of mine design criteria will then allow an estimate of a Probable Reserve for each deposit. A Probable Reserve is the tonnage and grade that can be mined from the deposit.
Local drilling contractor, Raglan Drilling, is conducting the drilling and is expected to continue with Carrick unitl the end of the program. Raglan Drilling will provide crews to double shift, enabling round the clock drilling.
CEO John McKinstry commented " From the time a decision to begin drilling is made, to actually starting to drill, it is a minimum two month wait whilst the permit is processed. For the new team, who have largely commenced with Carrick within that timeframe, the commencement of first drilling is a signficant milestone. The 60,000m program is a serious commitment, and a key step in the development of the LKK project; moving us closer to our goal of having initial reserves by December 2011 and first production by the end of 2012."
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