Odyssey Gold (ASX:ODY) is proceeding to undertake a Scoping Study for the Tuckanarra Gold Project in Western Australia, after a mining technical study supports the development of an open pit.
A revised resource estimate is required to be completed and a considerable amount of new drill data for the deposits will be included in the mineral resource and Scoping Study.
A reverse circulation drill rig will mobilise to site shortly to continue infill drilling at the Cable, Maybelle, and Highway deposits, to generate additional indicated resources to support the Scoping Study, as well as to address additional exploration targets.
This news comes after Goldfields Technical Services conducted the mining technical study, as part of Odyssey’s memorandum of understanding with Monument Mining – which is the owner of the Burnakura processing plant, located 30km east of Tuckanarra.
The company says technical work completed by GTS as part of the study provides a strong foundation for the rapid completion of a Scoping Study once infill drilling is completed and the mineral resources estimate (MRE) is updated.
Monument is considering restarting Burnakura with an option to upgrade the plant up to 750,000 tonnes per year. This will allow processing of third-party ore in the area, including from Tuckanarra.
Odyssey, which has a market capitalisation of $42 million, says the technical study results support the potential development of Tuckanarra and processing at an expanded processing plant, based mostly on simple cutbacks of the historical open pit, as well as from the Highway deposit.
Executive Director Matt Syme says simple, shallow mining, excellent grade, good metallurgy, and very advantageous permitting are all advantages of the project.
“We will expedite discussions to find the best processing solution for Tuckanarra, while completing a Scoping Study and continuing to explore the many targets for additional resources,” Syme says.
The company notes a preliminary civil engineering study also indicates the Great Northern Highway realignment would cost $5.2 million.
In addition, a preliminary permitting study was also undertaken, as part of the technical study, which supports the potential to receive all necessary permits as soon as next year, based on an existing approved mining proposal.
The Tuckanarra Gold Project, located within the Murchison Goldfields, includes an indicated and inferred resource of 5.14 million tonnes @ 2.5 grams per tonne gold for 407,000 ounces of gold.
Write to Aaliyah Rogan at Mining.com.au
Images: Odyssey Gold
