The RC drilling prog ram, which is the first step in Kidman’s strategy to start production at Burbanks in the September quarter, is expected to be completed by the end of this month. Drilling will then continue by transitioning underground for the next phase diamond drilling campaign.
The RC programme is targeting a series of lodes that have been the focus of earlier production in the Christmas Pit. The results of this programme will be used to model the mineralised lodes in order to develop a mining strategy for the remainder of the year.
The sections completed to date clearly delineate multiple lodes, with the drilling intersecti ng several small adits that were surveyed prior to the commencement of drilling.
The nuggetty nature of the o rebody can be seen in the historic drilling and in several of the holes drilled by Kidman to date. It is expected the increased drilling density undertaken by Kidman will provide greater resolution of the high and low g rade zones.
Since acquiring Burbanks at the end of April, Kidman has suspended production to refine the site layout and enable the drilling programs to start . The drilling is aimed at establishing JORC Resources in both the open pit and underground operati ons. Underground d rilling operations are set to commence in the third quarter of 2015.
Kidman acquired an 80 per cent stake in Burbanks and the Coolgardie North project from private interests for $3 million plus $2.4 million in working capital. It has an option to increase this to 100 per cent.
Drilling has outlined extensive gold mineralisation at both projects and there is outstanding exploration potential at each. But due to their private ownership, the projects have not been drilled to JORC standards.
The Burbanks Mining Centre has historical production of 366,340 ounces at an average grade of 13.9gpt from both open pit and underground sources.
The 5500mN section had two initial holes drilled close to a historically surveyed adit . Intercepts at the margin of the adit confirmed mineralisation however a true width was not established as no sample was collected due to the small mined void. The continuity of mineralisation beneath the adit bodes well for further down dip intersections when this section is revisited later in the programme.
Multiple lodes have been intercepted on the 5440mN as anticpated from historic open pit mining. The structural complexity of the lodes is still being resolved with lode hinge zones the target for higher grade mineralisation.
Cashflow generated by the initial production at Burbanks will help fund a more extensive ongoing drilling campaign over the following six to eight months targeting both open cut and underground mineralisation.
Kidman Managing Director Martin Donohue said " the drilling underway wa s the first critical step in ensuring the Company delivered on the undertakings it gave to the market at the time of the acquisition".
" The results delivered in the first part of the RC programme are in line with expectations which bodes well for the continued work and strategy of Kidman , " Mr Donohue said.
" We believe we have made an outstanding purchase and now we are determined to ensure that we implement the clear step – by – step strat egy we have outlined.
" Our strategy is aimed at unlocking the potential of Burbanks in this highly prospective part of the Coolgardie Gold Field . The process is measured and minimises risk and maximises opportunities for our shareholders."
