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MATSA RESOURCES LIMITED Capital/Financing Update 2005
65296_rns_2005-12-18_6a92d98d-564f-4b27-8ad7-f616399be02f.pdf
Capital/Financing Update
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KALGOORLIE-BOULDER RESOURCES LTD ABN 48 106 732 487
19 December 2005
Release to ASX
ASX Code: KAL
KBRL to generate cash flow from the Jackpot Gold project
KBRL has recently completed a scoping study of the Jackpot Gold project located 6kms NE of Coolgardie.
Highlights
- Planned production is 5300 ounces at a cash cost of A\$435.
- Forecast revenue is A\$3.6m.
- Low capital outlay. $\bullet$
- Planned mine commencement in late March 2006.
Optimisation Study
An optimisation was undertaken on the Jackpot resource ranging from \$625 to \$700/ounce. A Probable mining reserve has been calculated of 55,000t $@$ 3.1g/t Au to produce 5,300 oz recovered at a cash cost of only A\$435. The mine generates gross revenue of \$3.6 million at a aold price of A\$660/oz.
Preliminary metallurgical studies indicate a recovery of 97% through a conventional CIP plant with low reagent consumption. Further metallurgical studies will be completed.
Geotechnical and flora surveys have been completed and a Notice of Intent will be lodged with the Department of Industry and Resources and the Department of Environment shortly.
The Resource within the preliminary pit design comprises 6 plunging near surface lodes with high grades exploitable near surface.
| Ore | 54,994 | |
|---|---|---|
| Grade | g/t | 3.10 |
| Lower Cut | g/t | 1.00 |
| Contained Gold | OZ. | 5,472 |
| Met. Recovery | ℅ | 97% |
| Recovered Gold | ΟŻ | 5,308 |
| Total Movement | bcm | 318,074 |
| Strip Ratio | w/o | 13 |
Jackpot Resources
Resource definition drilling of 35 RC and 3 diamond holes have increased the drill density in the proposed open pit to a nominal 10 by 10 metres and confirmed the continuity of mineralisation at depth and along strike.
Mineralisation at Jackpot is structurally controlled within the Gunga ultramafic belt and is comprised of multiple stacked lodes in a north-south trending mineralised zone that extends over 400 metres. Individual lodes are continuous over $50 - 60$ metres along strike and are commonly 3 to 5 metres wide.
| Jackpot Resources | ||||
|---|---|---|---|---|
| Resource Classification | Tonnes | Grade | Ounces | |
| Indicated | 82,000 | $2.73$ g/t | 7,200oz | |
| Inferred | 178,000 | 4.87g/t | 27,900oz | |
| Total | 260,000t | $4.20$ g/t | 35,000oz |
Resources used for optimisation studies are detailed below:
- Resources are reported to a lower cut of 1.00g/t.
- Figures reported in the above table are rounded.
- Indicated Resources were modelled using a 3 dimensional approach. Numerous high arade intersections were not modelled if they did not have 3 dimensional continuity.
- High grade outliers were cut to a grade deemed statistically appropriated for each lode. Top cuts varied from 5g/t to 30g/t for the high grade "Bakers Lode".
- Grades were interpolated using an inverse distance squared approach.
- A sectional approach was used for the Inferred mineralisation includes deeper mineralisation and mineralisation to the south of the open pit area.
Another 18 hole RC program is planned to extend the mineralisation along strike in the open pit area as well as confirm and up grade the high grade "Bakers" lode at the base of the pit.
On the completion of open pit mining the company will be in a position to properly evaluate the deep Inferred mineralisation for a possible larger scale open pit or underground operation.
The company has been in talks with various toll milling and contract mining companies to develop the open pit. Mining operations are planned to commence late March 2006.
For and on behalf of the directors of Kalgoorlie-Boulder Resources Ltd
Trevor Matthews Managing Director
The information in this report that relates to Mineral Resources or Ore Reserves is based on information compiled by Richard Breyley, who is a member of the Australasian Institute of Mining and Metallurgy. Richard Brevlev is a full time employee of Kalgoorlie Boulder Resources. Richard Brevley has sufficient experience which is relevant to the style of mineralisation and the type of ore deposit under consideration and the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Mineral Resources and Ore Reserves. Richard Brevley consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
48 Lake Street, Northbridge WA 6003 PO Box 312, Northbridge WA 6865 Tel: 08 9228 9742 Fax: 08 9228 8685 [email protected] www.kalgoorlieboulderres.com.au