Crater Gold Mining has made the first sale of gold produced from the new High Grade Zone (HGZ) mine at the Crater Mountain Gold Project. The company has sold 17.4 ounces from the processing of ore during the implementation stage of mining.
The average recovered grade was 6.0 grams/tonne gold with the precious metal recovered from a combination of mostly low and some high grade development drives. It was processed through the company’s bulk sampling gravity separation plant.
Crater Gold says mining of targeted high grade intersections of gold bearing vein sets will commence soon. Of immediate priority is the intersection of two north-south trending structures, NV1 and NV2, with the east-west trending structure EV2. This was the site of bonanza grade channel samples up to 847 grams/tonne.
Mining capacity is at the implementation stage, with full capacity anticipated in about three months as the mining plant upgrade is completed.
Crater Gold’s managing director Russ Parker says, “This is a major milestone for the company. We have now sold our first gold in the history of the company. The production level will increase as we continue to upgrade our plant to full capacity.
“I’m looking forward to ongoing cash flow as our objective is to establish the company as a profitable gold producer. When we reach mining plant capacity, we anticipate producing some 10,000 ounces of gold in the first full year of production, at an all-in cash cost of below $400 per ounce average over the mining lease term.
“The HGZ project is a high margin operation. The HGZ mine will generate strong cash flows, which will fund further expansion at the HGZ mine and enable further exploration activities at the company’s other assets.”
The producing veins have been delineated from mapping of underground development and subsequent diamond drilling in 2014.
Exploration is continuing and the company has recently completed seven drill holes testing east-west trending structures. High grade intersections were recorded in four holes, including two with bonanza grades.
Results include 39.8 grams/tonne over 1.0 metres and 26.6 g/t over 1.0 metre in one hole; 32.5 grams/tonne over 0.5 metres in another; 95.0 grams/tonne over 1.0 metres in the third hole; and 33.1 grams/tonne over 5.0 metres including 103.0 grams/tonne over 1.0 metre, 45.4 grams/tonne over 1.0 metres and 44.3 grams/tonne over 2.5 metres including 100.0 grams/tonne over 1.0 metre in the fourth.
Exploration of the southern extension of HGZ is to commence shortly.