REED RESOURCES INCREASES UNDERGROUND RESOURCES AT PADDYS FLAT TO 373,000oz.
HIGHLIGHTS
- Re-interpretation of the Vivian-Consols-Mudlode-Fatts ore system completed.
- Resource estimate by Snowden increases the global resource from 1.78Mt for 318,000oz to 1.77Mt for 373,000oz, due to a 17% increase in grade.
- Underground reserve and mine design in progress on new model.
- Recommencement strategy to include underground operations.
Australian diversified resources company Reed Resources Ltd (ASX: RDR) (the “Company” or “Reed Resources”), is pleased to announce a new resource estimate in its evaluation to resume operations at the recently acquired Meekatharra Gold Project, Western Australia.
A new resource model has been constructed and completed for the Vivian-Consols-Mudlode-Fatts ore system at Paddys Flat (Table 1). The previous combined resource of 1.78Mt for 318,000oz has been increased to 1.77Mt for 373,000oz representing a material increase in global grade from 5.4g/t to 6.6g/t. This comes shortly after a new model for the Prohibition ore body has been completed, allowing an all- encompassing underground reserve mining plan to commence.
Project Update
The Management team for the project are progressing many facets of the BFS and operational aspects for recommencement. All key work packages have been identified and assigned where necessary, and the time-line for recommencement is within the expectations. Key items being progressed include:
- Completing the optimisation for the underground is underway and progressing well;
- The pit designs are being finalised and scheduling of the material will commence shortly to deliver an ore schedule;
- The refurbishment and engineering optimisation of the milling circuit is in progress with GR Engineering;
- The camp refurbishment and expansion options are in progress and being assessed by SCOPE Australia;
- Power generation and fuel options are being negotiated and costed;
- Contracts for the main site services are being negotiated with interested parties where relevant.
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