Develop Global (ASX:DVP) is eyeing an early 2024 resource and reserve update for its Woodlawn mine in New South Wales following a fresh batch of ‘outstanding’ drill results.
The planned resource update, which is currently slated for during the March quarter, will feed into a new mine plan for the Woodlawn copper-zinc asset.
Develop, which has a $634.87 million market capitalisation, says the latest assays from Woodlawn provide more ‘strong evidence’ that the project is a ‘bigger, higher-grade, and more copper-rich’ system than the company previously thought.
Some of the top new results include 10.6m @ 13.3% copper equivalent (CuEq), 8.2m @ 13.6% CuEq, 23m @ 6.3% CuEq, and 7.5m @ 13% CuEq.
Further, the results include a potential ‘major’ extension to the high-grade Kate Lens in the area, with 1.7m @ 4.4% CuEq intersected from around 440m down-plunge from Kate Lens.
Develop reports that underground ore development in the lowest level of Kate Lens has yielded ‘significantly thicker’ mineralisation than modelled, potentially increasing production volumes.
Develop Global Managing Director Bill Beament says these results reveal more ‘high-grade’ copper and zinc mineralisation within the existing Woodlawn resource and also extend the known mineralisation outside of the resource.
“This paves the way for further growth in the resource and reserve, which will in turn underpin another update in the mine plan.
But they are also very important at the macro level because they add to a growing picture which shows Woodlawn is a significantly bigger mineralised system than has long been understood to be the case.
This could have significant ramifications for production rates, mine life, and what are already exceptional financial returns as forecast in our recently updated mine plan.
“We have already established that Woodlawn is a substantial orebody with a plus-10-year mine life, but it is fast becoming clear that it could be significantly bigger”
The potential is demonstrated by the several new lenses of mineralisation which have been identified in this drilling program as well as additional mineralised positions within the resource.
We have already established that Woodlawn is a substantial orebody with a plus-10-year mine life. But it is fast becoming clear that it could be significantly bigger.”
The Woodlawn copper-zinc mine lies in the ‘world-class’ Lachlan Fold belt in New South Wales. The mine operated from 1978 to 1998, processing 13.8 million tonnes at 9.1% zinc, 1.6% copper, 3.6% lead, 74 grams per tonne (g/t) silver, and 0.5g/t gold.
Develop took control of the old mine in 2022 and has since taken on an ‘aggressive’ growth-focussed drilling program in the area, resulting in an updated mineral resource estimate of 10.3 million tonnes @ 1.8% copper, 6.1% zinc, 2.2% lead, 47.2g/t silver, and 0.5g/t gold.
Develop Global had $56.7 million cash at hand and $43.4 million in unused finance facilities as of 30 September, according to its latest quarterly report.
Write to Joshua Smith at Mining.com.au
Images: Develop Global
