West Australian gold explorer Focus Minerals (ASX: FML) (Focus or the Company) announces the completion of an independent Mineral Resource estimate for the CNX deposit, part of the Company’s Coolgardie Gold Project. The independent Mineral Resource Estimate was completed by Cube Consulting (Cube).
Highlights:
- Independent Mineral Resource Estimate completed for CNX gold deposit.
- Local Uniform Conditioning (LUC) approach applied at CNX to report recoverable resources and assist with preparation for maiden Ore Reserve.
- Practical approach for CNX-style mineralisation delivers resource including reasonable open pit dilution.
- CNX mineralisation remains open at depth and along strike, highlighting the outstanding potential of this key Coolgardie gold deposit.
CNX is a key deposit within the Coolgardie Gold Project (Coolgardie), which covers 175km2 of highly prospective tenements on the outskirts of the Coolgardie township in the Goldfields region. CNX is located immediately north-west along strike of the Three Mile Hill open-cut mine (Figure 1) and close to the Three Mile Hill processing plant (in care and maintenance).
Cube provided technical assistance and review of data leading to the October 2021 CNX Geological Mineral Resource update (refer ASX announcement dated 28 October 2021). The October resource estimate targeted all mineralisation at CNX including zones of thinner and in places thinner and lowergrade mineralisation.
As part of this work with Cube, a preliminary Local Uniform Conditions (LUC) resource estimate was completed in October as a cross-check for QAQC purposes. It was noted during this work that the LUC model performed well when compared with reported 1991 production from the CNX trial pit, which has been relatively heavily drilled. Following completion of the October Mineral Resource update by the Company, Focus decided to formally complete the CNX LUC resource estimate so it could be assessed for use with follow-up reserve estimation.
The independent LUC Mineral Resource estimate for CNX delivered by Cube reported mineable blocks that included reasonable dilution by estimating tonnage and grade of mineralisation, which can be recovered using a Selective Mining Unit (SMU). Essentially, the LUC process characterises thin and lower-grade mineralisation that can present as sub-grade in an open pit mining environment. This independently prepared resource update differs to the CNX Mineral Resource reported by Focus in October because it excludes thin mineralised zones. This feature applies only to the resource model used by Focus for the CNX deposit.
The newly completed LUC Mineral Resource estimate has now been reviewed and Focus has decided to use it for the maiden CNX Ore Reserve estimation, which will be completed in coming months. The mineralisation at CNX remains open at depth and along strike and Focus is confident in CNX. Further extensional drilling work and Mineral Resource updates at CNX are planned for 2022.
