Great Boulder Resources (ASX:GBR) has begun a Scoping Study for the 100,000 ounces @ 3.3 grams per tonne gold Ironbark gold deposit, as part of the Side Well Project in Western Australia.
The study, commissioned by mining consultants Entech, will consider the economics of an open pit mine using a toll treatment model at one of the nearby gold process plants within a 50km radius. The optimised pit will then be refined into a mine design, alongside accompanying mining schedule and a cashflow model.
Great Boulder, which has a market capitalisation of $59.96 million, says this work is expected to take six to eight weeks to complete.
Managing Director Andrew Paterson says this study represents the start of the next stage of the company’s progression from discovery to development, to mining.
“We anticipate a Scoping Study on Ironbark to demonstrate the robust nature of these near-surface high-grade deposits that we’re targeting within the Eastern Corridor at Side Well,” Paterson says.
“It should also clearly demonstrate that Great Boulder is seriously under-valued as we aim to build a large, high-grade gold resource in the centre of a major goldfield, surrounded by existing infrastructure.
“We selected Ironbark for the initial Scoping Study as it offers an immediate, standalone, shallow, high-grade gold deposit that has already been drilled, with resources established to a high confidence level.”
The company notes a mining lease application is in progress, which means Ironbark can be assessed on its own merits or as part of the broader Side Well Project.
The Scoping Study will assume a toll treatment model at one of the three process plants neighbouring the Side Well project, removing the requirement to invest capital in a stand-alone process plant, and allowing an early revenue stream to fund further exploration and resource growth activities at Side Well.
As reported by Mining.com.au regarding the Burnakura agreement with Monument Mining (TSX-V:MMY), outputs from the Ironbark study will also be shared with Monument for use in their economic assessment for re-starting the Burnakura carbon-in-leach process plant.
Currently on care and maintenance, Burnakura has capacity to treat 260,000 tonnes per annum. The mill was upgraded from 160ktpa to 260ktpa as part of a refurbishment by Kentor Gold in 2012 before being placed on care and maintenance in 2013.
In its study, Monument will also consider upgrading the mill to about 750,000tpa, providing additional treatment capacity for third-party ore in the district.
Meanwhile, aircore drilling is ongoing at the Eaglehawk prospect. The program is defined to define the highly prospective dacite host unit further north and east of previous drilling.
An updated resource estimate for the Mulga Bill deposit is also expected to begin in May 2025, subject to consultant availability. This will be considered an interim update while drilling continues at Eaglehawk and Side Well South.
Great Boulder is aiming to deliver a 1 million ounce gold resource at Side Well this year.
The Side Well Gold Project, located adjacent to Meekatharra in Western Australia, has a resource of 668,000 ounces @ 2.8g/t gold.
Write to Aaliyah Rogan at Mining.com.au
Images: Great Boulder Resources
