Modest mine delivers goods

摘要

While it has a relative short life of only nine months, Anglo Australian Resources NL's Mandilla gold project will provide cash flow to allow the junior to progress a pre-feasibility study on its much larger Koongie Park base metals play. The company started mining the Mandilla deposit, located near Kambalda in Western Australia, during the June quarter. Ore is toll treated at the Higginsville plant at Coolgardie. Production was 51 percent higher than predicted from the reserve model, with 4,755 ounces produced at a grade of 17.68 grams/tonne from the treatment of 8,451 tonnes. Early this month Anglo Australian sold 4,221 oz of gold at 775 dollars/oz, which generated 3.3 million dollars in revenue. The deposit itself is a gold mineralised palaeochannel overlain by about 20 metres of overburden. The main gold mineralised part of the palaeochannel defined at a 1 g/t cut-off is 5-30m wide and more than 800m in length. In September last year the company announced a reserve of 70,100t at 7.52 g/t for 16,960 oz using a 100 g/t gold top-cut. Anglo Australian Resources general manager-exploration Peter Komyshan said the company considered the Mandilla development to be low risk.