TG Metals (ASX:TG6) expects to recover more than 90% at its Van Uden Gold Project in Western Australia’s Forrestania Greenstone Belt, indicating a cash flow opportunity for the company.
Column leach testwork at the laterite resource, which could be used in the heap leach operation, returned 1.05 million tonnes (Mt) at 0.52 grams per tonne of gold for 17,700 ounces.
The company predicts that a further 1.85 Mt at 1.05 g/t of gold for 62,400 ounces in transition material could also be “amenable to heap leach”.
Testwork also reveals that multiple laterite targets have been identified from soil sampling, which have the potential to double the current laterite resource.
That growth, however, depends on the effectiveness of planned drilling in defining laterite gold mineralisation.
“Heap leach testwork has continued to outperform expectations and reinforces our high level of confidence of favourable outcomes for a heap leaching operation on over 1Mt of laterite within the Van Uden gold deposit,” CEO David Selfe says.
“Processing onsite has the advantages via heap leach of no or transport costs, no grinding costs, [and] no tailings dam costs.”
He adds that the company recently sought quotations for second-hand, heap-leach-specific equipment to accelerate the project’s startup phase.
A final investment decision on the equipment is expected in the coming weeks.
The company is also proceeding with mine design work to “take in the entire laterite resource”.
Early assessments indicate the laterite is at surface level and requires no pre-stripping, minimal handling, and no transport costs due to potentially onsite facilities.
Initial meetings have been held with the state Department of Mines, Petroleum and Exploration to commence the process of mining proposal submissions. In line with this, the company has begun to engage suitable contractors for mining and earthworks activities.
Equipment sourcing has also advanced with the identification of used equipment as well as obtaining quotations for new equipment.
TG Metals is a lithium, nickel, and gold exploration company with assets in Western Australia’s Yilgarn region.
Write to Richard Szabo at Mining.com.au
Images: TG Metals
