Amayapampa Shines for Republic Gold
Amayapampa shines for Republic Gold
QUEENSLAND-based explorer Republic Gold has increased the total mineral resources at the Amayapampa gold project in Bolivia by 50% to 1.08 million ounces.
The company said 62% of these new mineral resources are in the high-quality measured and indicated categories.
The company is also upgrading the mineral resources base at the Tregoora and Northcote gold projects in far north Queensland and will do a further resource update at Amayapampa once the current drilling program is complete.
The company said it is targeting a total mineral resource of 2 million ounces of gold from these increases.
The company's total mineral resources base is now 1.582Moz gold plus 8000 tonnes of antimony.
'The company has expended a significant effort on Amayapampa and this increase is the result of a lot of hard work by the company's Australian and Bolivian employees and consultants,' Republic's managing director John Kelly said.
Kelly said when the company purchased the Amayapampa project it believed the previous mineral resources were conservative, given the current gold price environment.
He said the previous mineral resources were calculated when the gold price was less than $US350 per ounce and excluded many zones of lower-grade mineralisation.
Kelly said with the many current predictions of a sustained, near-future gold price at around $US1000/oz, the value of the project will be significantly higher.
'At higher gold prices, the current mineral resources cut-off grade of 0.6 grams per tonne gold may be able to be lowered, thus increasing the mineral resources,' Kelly said.
He also pointed out that drilling is continuing at Amayapampa and it is hoped the drilling results will improve the quality of the mineral resources and the quantum.
Kelly said the company is organising a trip of potential financiers for the project from China. If this trip is successful then the feasibility study progress could be greatly accelerated.
The Amayapampa bankable feasibility study is in progress, with a preliminary design being completed for the new tailings dam location.
Republic Gold shares were unchanged in morning trade at 2.8c.
