Avoca Resources has expanded the gold resource at its South Kalgoorlie operations by 2.9 million ounces, taking the total to 4.5 million ounces.
This represents a 174% increase from the project’s initial resource of 1.6 million ounces and expands the company’s total resources by 76% to 6.7 million ounces.
The company said it had completed detailed re-estimation of the project’s HBJ and Mt Marion deposits, including a mining scoping study at HBJ.
The HBJ resource increased 335% from 750,000 ounces to three million ounces, while the Mt Marion resource increased 2332% from 25,000 ounces to 608,000 ounces.
The scoping study revealed a potential mining inventory at the HBJ deposit of 51 million tonnes at a grade of 1.8 grams per tonne for three million ounces.
The deposit, which previously had an inventory of 15 megatonnes at a grade of 1.5 grams per tonne for up to 750,000 ounces, has subsequently been renamed the HBJ Superpit.
According to Avoca managing director Rohan Williams said the results had dramatically exceeded the company’s expectations.
“In addition to the potential for a large expanded pit at HBJ, we see underground potential at HBJ as well as resource extensions and new exploration discoveries from within the project tenure,” he said.
“We remain confident that producing a total of 400,000 ounces per annum from Higginsville and South Kalgoorlie by the 2013 financial year is an achievable goal.”