The resource quality at Lionsgold Limited’s Jonnagiri Gold Project in India has been substantially upgraded. There are now 214,000 ounces in the indicated category and 147,000 ounces in the inferred category at the East and West blocks.
The previous resource estimate had 103,000 indicated ounces and 248,000 inferred ounces. There was a marginal increase in the total resource to 361,000 ounces.
AIM-listed Lionsgold, which was formerly called Kolar Gold, has a 20.5% stake in Geomysore Services, the company that owns the 30 year mining lease.
Lionsgold CEO Cameron Parry said, “The results underpin the work and data gathered via the current feasibility study and materially improve the viability of a producing gold mine.
“Additionally, the early test drilling results from the new South Block at Jonnagiri are particularly encouraging and plans are being made for further drilling on the South Block to establish an additional open pittable gold resource.”
Best of the shallow drill results included 8 metres from surface @ 2.67 g/t gold and 5 metres from 6 metres @ 4.24 g/t.
Cameron Parry says that Lionsgold and its partner Geomysore are putting in place the ‘stepping stones’ for a shift in value of the Jonnagiri deposit. He says the potential will be fully explored in an economic feasibility study (EFS) set for publication at the end of April.
“Subject to the conclusion of the EFS we are then expecting to see the bulk of the indicated resource become a reserve,” he told Proactive Investors. “These are the stepping stones of what can become a fairly dramatic value shift as you go through these various categories with your gold deposit.”
The partners plan to undertake a 4000 metre drill program to further uncover the South Block’s potential.