Every now and then a new mining float comes along that has already seen real money spent on it, resulting in resources and reserves being proven up, with a short term pathway to production – it is rare but it does happen. Whilst most new listings are seeking money to actually go and find something, it is refreshing to see Coolgardie Minerals go to market with a BFS already tucked under its belt and a starter reserve that can be immediately toll treated to fund the ongoing exploration activities of the company.
Coolgardie Minerals has already ploughed $9m into its Bullabulling Gold Project, resulting in an initial resource of 136,000 ounces and importantly, a reserve of just over 90,000 ounces.
The project, that straddles the historic town of Bullabulling about 25km from Coolgardie, boasts a handful of exciting looking prospects with the best of them, the Geko prospect, being shovel ready with a reserve already in place.
The mineralisation at Geko kicks off from about 15m with a high grade oxide zone and continues to at least 140m, which is the extent of the current drilling.
Coolgardie Minerals has a rolled gold strategy at Bullabulling that involves debt funding Geko into immediate production via contract mining and toll treatment in the region.
The resultant income will be used to extend the Geko resource and explore a handful of other exciting prospects within the project.
Whilst Geko’s current resource is modest at 2.6 million tonnes grading 1.7g/t for 136koz gold, independent geological consultants CSA Global have indicated there should be more to it given the lack of extensional drilling, particularly in the fresh rock.
The company is planning to immediately further drill test Geko after listing.
Interestingly Coolgardie Minerals’ in-field team have noted that the historic workings at Geko appear to be on a different orientation to the veining observed in the more recent diamond holes.
THIS ARTICLE FIRST APPEARED IN THE WEST AUSTRALIAN
SUNDAY 17 JUNE 2018
AUTHOR MATT BIRNEY