EXPLORATION & DEVELOPMENT

Greenvale delivers maiden gold resource

STORIED explorer Greenvale Energy has delivered a maiden resource of 299,800 ounces grading 1.12 grams per tonne for its Gold Basin project, using a 0.5gpt cut-off, eight months after spinning up the drillbit.

 Greenvale has set up shop in Arizona.

Greenvale has set up shop in Arizona.

Using a lower 0.25gpt, which is similar to other operations in the area such as the Briggs heap leach deposit in south-east California from which 738,000oz was produced in the 1990s, the resource increases to 360,900oz.
 
Greenvale listed on the ASX in 1971, and returned to the gold patch after many years away last September with a deal to earn a controlling interest in several concessions in Arizona after it appeared its remaining kerogen shale interests at Alpha were unlikely to be a company maker, and it struck regulatory issues with the Queensland government.
 
The inferred oxide resource is contained across the Stealth and Cyclopic deposits, with drilling at the latter constrained to within 50m of surface and containing seven mineralised layers that are open in all directions. 
 
Greenvale is keen to move the resources into a higher confidence category and examine a low-cost production scenario using a heap-leach operation.
 
The company said the results were "outstanding" and justified the A$550,000 spent to date.
 
Having delivered a maiden resource, the company earned a net 25.01% via its 50.01% interest subsidiary Greenvale Gold Basin, co-owned with original farm-in rights holder New England Metals (49.1%).
 
It has 90 days to purchase NEM's stake at a price based on 1.75% of the 30-day average of the gold price, multiplied by the resource.
 
Its JV partner is Aurum Exploration.
 
A rights issue to fund further work is being planned, with the company having just $117,000 in cash at September 30.
 
The next program will focus on infill and diamond drilling, plus some exploration drilling to grow the resource.
 
Greenvale shares were steady at 2.9c this afternoon, valuing the tiddler at $2.7 million. 

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.