thunderbox open pit

Saracen To Increase Expenditure Following Drill Results at Carosue Dam and Thunderbox

Saracen Minerals (ASX: SAR) has announced the discovery of extensive mineralisation outside of the existing Resources at both Carosue Dam and Thunderbox, including the rapidly emerging discovery at Atbara in WA. It may be noted that the strike length of recent Atbara discovery increased to 650m, open in all directions.

The company expressed confidence that the newly-discovered mineralisation would feed into the upcoming Reserve and Resource update, which would, in turn, underpin the Company’s seven-year growth strategy. The company is aiming to grow production to 400,000oz a year.

The company said that A$60m investment is planned over FY19 for exploration across its Western Australian operations.

The Two Projects of SAR

Saracen, the gold mining company has an annual production of over 300,000ozpa, with growing cash flows. Its production comes from two WA projects, Carosue Dam Operation, and its Thunderbox Operation. The company has announced outstanding extensional drill results.

Drill Results at Carosue Dam

The company announced outstanding extensional drill results from Karari, Whirling Dervish, and Atbara discovery.

SAR said that at Karari, thick high-grade extensional drill results included 27m @ 8.1g/t, 23m @ 7.1g/t, 20m @ 8.0g/t, 17m @ 7.8g/t and 30m @ 4.0g/t.

The company reported thick high-grade extensional drill results at Whirling Dervish which included 37m @ 3.5g/t, 31m @ 3.4g/t and 24m @ 5.1g/t, and 19m @ 4.4g/t.

Saracen said that the aggregated drill results at the Atbara discovery included 104m @ 1.4g/t including 64m @ 1.6g/t, 16m @ 1.8g/t and 24m @ 0.5g/t; 130m @ 1.1g/t including 60m @ 1.0g/t, 22m @ 1.3g/t and 48m @ 1.0g/t; 82m @ 1.3g/t including 47m @ 1.1g/t, 12m @ 1.5g/t, 10m @ 1.1g/t and 13m @ 1.9g/t; and  91m @ 1.1g/t including 62m @ 1.3g/t and 29m @ 0.7g/t.

The company noted that the Atbara has been merged with the adjacent Qena discovery and the combined system is now called Atbara. It has a strike length of 650m and remains open in all directions.

Drill Results at Thunderbox

The company reported that at Thunderbox A Zone, extensional drill results included 44m @ 2.0g/t and 25m @ 2.9g/t; infill results included 59m @ 2.3g/t and 86m @ 2.1g/t. Meanwhile, at Thunderbox D Zone open pit, infill drill results reported by SAR included 43m @ 3.7g/t, 73m @ 1.9g/t and 43m @ 1.6g/t.

Latest Updates and Future Plans

The company announced that new gold anomalies were discovered at both Mt Celia in Carosue Dam and at Bannockburn in Thunderbox.

SAR said that Aircore drilling is ongoing at Mt Celia, with a focus to increase the drill coverage over the current anomaly. Meanwhile, the company reported that the aircore drilling at Bannockburn yielded strong anomalism identified in a number of locations. The follow up to these anomalies are expected to be completed in FY20.

Saracen reported that the Carosue Dam Seismic Project is ongoing. The 3D seismic survey has commenced and is scheduled to be completed during the September quarter 2019. This survey is anticipated to provide an extremely valuable dataset for future exploration targeting from late 2019.

Budget Increased to A$60 million

Aimed at fulfilling its 400,000ozpa growth strategy, the company has announced a budget of A$60m planned over FY19 for the exploration across its WA operations. This is an increase of A$35 million from the earlier plan.

This A$60 million is planned to be split between the Carosue Dam corridor (A$11 million), the Karari-Dervish deposits (A$20 million), and the Thunderbox project (A$16 million). The company said that A13 million will be allocated for other exploration activities.

The company said that at the end of March 2019, A$38m of the total has been invested with strong results across the portfolio.

Saracen Managing Director Raleigh Finlayson said, “Our aim is to grow production to 400,000oz a year while maintaining long mine lives and these outstanding results show we are on track to achieve that goal.

We are finding extensive mineralisation outside of the existing Resources at both Carosue Dam and Thunderbox, including the rapidly emerging discovery at Atbara.”

Written By Jonathan Norris
Jonathan is a founder of and has been covering the resources industry since 2018. With over 17 years experience in print, broadcast and online media, Jonathan has seen first hand the transformative effect of online niche media.