Orminex Limited (ASX: ONX) has announced an update on mining operations at its joint venture Comet Vale project in the Goldfields region of Western Australia.
The company said that the mining development at Kings Bounty Decline at Comet Vale is progressing to mine plan. ONX reported that 10,000 tonnes of development and stoping ore on ROM pad is now ready for processing.
The company said that further wide ore strikes and multiple development headings confirm high-grade potential. Meanwhile, a site visit was completed by ONX executives, GBF principals, and Wyllie Group to assess the progress.
Comet Vale project
The Comet Vale Project is centred on the old mining town of Comet Vale, 100km north northwest of Kalgoorlie, Western Australia. The Goldfields Highway passes through the centre of the Project area and is alongside the Sand Queen main shaft.
Orminex Limited had formed a strategic Mineral Ventures alliance with the contract mining company GBF Mining Pty Ltd and entered into conditional agreements to acquire interests in the Comet Vale project. Wyllie Group is also a cornerstone investor in Orminex.
The Project is recorded as hosting a combined JORC 2012 compliant Indicated and Inferred Mineral Resource of approximately 0.75 million tonnes at 8.4g/t for 203,100 ounces of gold.
Mining development update
ONX said that mining development at Comet Vale continues to progress well with the decline now advanced below the 4.3 level and is now focused on accessing the 4.6 level.
The 4 level and 4.3 level accesses have already completed. Orminex said that the initial ore development along strike on the 4.3 level is very encouraging with ore widths and grades exceeding expectation, providing the Company with increased confidence in its ability to deliver on the mine plan.
The company reported that the stoping of the 3.3 and 3.6 levels is performing in line with expectations and is continuing to reinforce the high-grade potential of the project.
ONX said that with multiple ore headings and steadily building surface ore stocks, the mine continues to make good progress towards a steady state of production in line with the previously outlined mine plan.
Processing update
The company said that the development and processing ores are being stockpiled onsite, ready for the next processing campaign at the Lakewood Mill.
The stockpile currently has an estimate of over 10,000 tonnes, being a combination of development ore and fresh ore.
ONX said that the next processing campaign is booked for July 2019 and the Company expects to process up to 20,000 tonnes.
High-grade potential
The Company reported that it is continuing the process of face sampling gold bearing structures along the strikes. ONX said that this process is confirming the ongoing high-grade potential of the project.
ONX reported that the mining at the 4.3 level has intersected a rare “jewellery box” of visible gold. Orminex noted that a single face cut at that level provided coarse, visible high-grade gold which is hosted in a strongly laminated quartz vein.
Site visit completed
A recent site visit was completed by Orminex Executive Chairman Daryl Henthorn, Wayne McGrath (Executive Chairman of Wyllie Group), and Ross Graham and Michael Foulds (Principals of GBF Underground Mining). This included an underground inspection of mining, development, and stoping activities.
Management comments
Orminex Executive Chairman Daryl Henthorn commented: “We have great partners in GBF and the Wyllie group and the Company is looking forward to bringing this first Mineral Ventures project into steady production”.
Wyllie Group Chairman, Wayne McGrath said: “It was great to see the progress of the Kings Bounty Decline at Comet Vale and we have increasing confidence that the mine plan is progressing to steady state production, which will underpin the Mineral Ventures model and support the development of future projects”.
The Company said that it will continue to update shareholders as mining progresses at the Comet Vale Project.
