Javelin Minerals (ASX:JAV) receives mining approval for Eureka Gold Project
Javelin Minerals has received final mining approval for its Eureka Gold Project near Kalgoorlie, with the WA Department of Mines, Petroleum and Exploration approving the Mining Development and Closure Proposal.
The company said Eureka is now shovel ready, with all required approvals, a JORC Mineral Resource and a mine plan in place.
Highlights
Final mining approval received for the Eureka Gold Project.
Eureka has clearing and water permits, a JORC Mineral Resource and mine plan in place.
JORC Mineral Resource of 2.04Mt at 1.69g/t Au for 110,687oz, including an Indicated Resource of 1.36Mt at 1.8g/t Au for 78,678oz.
Recent drilling confirmed shallow mineralisation and extended high grade mineralisation along strike.
Main Eureka orebody remains open down plunge to the north.
MEGA Resources is to provide $25M in project financing, subject to execution of an ore purchase agreement.
Discussions are ongoing with nearby mill operators regarding Eureka ore processing.
The Eureka Mineral Resource is reported above a 0.5g/t Au cut off and comprises 2.04Mt at 1.69g/t Au for 110,687oz.
The Indicated category contains 1.36Mt at 1.8g/t Au for 78,677oz, while the Inferred category contains 682,088t at 1.46g/t Au for 32,010oz.
The company states that the Indicated category contains 71% of the total ounces within the Eureka Deposit, with the remaining 29% classified as Inferred.
Recent drilling at Eureka confirmed the continuity of shallow mineralisation while extending high grade mineralisation along strike.
Significant intersections reported by the company included 4m at 2.7g/t Au from 91m at EKRC036, 4m at 2.3g/t Au from 52m at EKRC037, 5m at 2.1g/t Au from 45m at EKRC022, 10m at 1.2g/t Au from 85m at EKRC020, 5m at 2.1g/t Au from 67m at EKRC019 and 4m at 2.0g/t Au from 64m at EKRC038.
The drilling focused predominantly on areas of lower drill coverage within 80m of surface and confirmed the mineralised zones within the planned Eureka open pit cutback.
Drilling also intersected strong mineralisation in the northern extent of the planned Eureka Northwest open pit, extending zones of known high grade mineralisation.
Javelin is planning to complete drillholes EKRC011 and EKRC012 via diamond tails to test the northern extensions of the high grade mineralisation down plunge.
The company states that the main Eureka orebody remains open in this north plunging orientation.
The project is subject to a Right to Mine agreement with MEGA Resources, an established Goldfields mining services provider.
Under the agreement, MEGA will provide geological, engineering, mining and transport services, as well as $25M in project financing to fully fund the Eureka Gold Project into production and positive cashflow, subject to execution of an ore purchase agreement to process Eureka ore.
The start of Eureka ore processing will trigger upfront payments by MEGA to Javelin of $250,000 a month as a prepayment from Javelin’s profit share.
Discussions are currently ongoing with nearby mill operators with the aim of starting Eureka ore processing.
The company described the approval as a milestone in advancing Eureka towards near term gold production.
The announcement records the approved MDCP, existing project approvals, the JORC Mineral Resource and mine plan, recent drilling results, planned diamond tails and the project financing arrangement with MEGA Resources.