Orbminco (ASX:OB1) has completed resource drilling and initial metallurgical test work at its Majestic North Gold Project as it targets a final investment decision in early September.
Phase one test work indicates the Western Australian project’s ore is free-milling and recoverable through conventional cyanide leaching, with no material processing complications identified for potential ore sales.
An independent review is underway, while further work will assess grind parameters, reagent consumption, and recoveries for each processing option.
Orbminco has also completed all three stages of its reverse circulation drilling program, comprising infill, structural junction and extension drilling, and a deep basement hole. Final assays from the junction and basement drilling remain pending.
The project hosts a mineral resource estimate of 1.37 million tonnes @ 1.14 grams per tonne gold (Au) for approximately 50,400 ounces, using a 0.5g/t cut-off grade.
This includes a higher-grade domain of 249,000 tonnes @ 2.42g/t Au for approximately 19,300 ounces @ a 1.5g/t cut-off. The domain comprises 171,000 tonnes @ 2.30g/t Au indicated and 78,000 tonnes @ 2.6g/t Au inferred.
Under Orbminco’s conceptual development pathway, stage one would selectively mine the shallow material for toll treatment or direct sale to an existing mill. Stage two studies are assessing potential onsite processing of the wider orebody.
The company is discussing both stage one processing routes with potential counterparties and expects to select a pathway in mid-August.
Chairman Duncan Gordon says Orbminco expects the proposed first-stage mine to produce material that could interest operators of existing mills.
“We expect to finalise these discussions together with a decision to mine and lodging development applications over the coming quarter,” Gordon says.
The company is targeting the first week of September for its investment decision and lodgement of a mining development and closure proposal with Western Australia’s Department of Mines, Petroleum, and Exploration.
Orbminco holds a mining lease M25/369 over Majestic North, located 65km southeast of Kalgoorlie.
Write to France Pinzon at Mining.com.au
Images: Orbminco
