Glencoe Prospect Report on exploration for the year to 19 November 1989

Abstract

The Glencoe gold prospect is located some 140 kilometres south-east of Darwin and has been subject to major drilling and costeaning exploration programmes. In early 1989 all exploration data was assessed and resources figures determined. A total in-situ geological resource of some 1500,000 tonnes at a grade of 1.9 grams per tonne (cutoff grade 0.5 grams per tonne) has been defined to a depth of 100 metres. Applying more stringent grade and thickness restraints to the data a potentially ore grade resource of 730,000 tonnes at 2.30 grams per tonne is determined. Of this some 3000,000 tonnes at 2.57 grams per tonne lie within 30 metres of the surface. Further restraints based on mining, treatment and economic considerations must be placed on these figures before a mineable or reserve can be determined. Because of low grades and patchy ore distribution it was considered unlikely that mining could proceed below a depth of 30 metres (which approximates the base of oxidation). This indicated that a 'stand alone' operation could not be economically justified and a joint venture partner was sought. In August agreement was reached with the Tanami Joint Venture to mine and process a bulk sample of some 35,000 tonnes from four small pits. Mining was carried out from 25 September to 28 November with ore trucked to the Mt Bonnie CIP plant. Processing is still in progress and hence full details of the exercise are not yet available.