The deposit has increased in scale to 3.42 million tonnes grading 1.18 grams per tonne gold and 9gpt silver for a total of 129,000 ounces gold and 862,000oz silver, up from 100,000oz gold and 624,000oz silver.

 

Resources are split evenly between the indicated and inferred statuses.

 

REZ recently updated its scoping study numbers and estimated that earnings could almost double to A$55 million using a $2600 per ounce gold price.

 

Previously it aimed to recover 43,500oz gold and 270,000oz silver over around four years at estimated C1 cash costs of $1400/oz. 

 

The junior is now finalising pit optimisation and mine scheduling to underpin a proposed 300,000-600,000tpa development.

 

The junior is considering a $13 million development, initially based on a heap leach, before transitioning to a bulk sulphide concentrate project using a similar floatation process to that used at Evolution Mining's nearby Mt Carlton operation.

 

As part of plans to advance the project to full feasibility studies additional drilling and metallurgical testing are proposed.

 

REZ shares were last traded at 1.6c, with the company valued at $6.2 million.