Revised Red Dome resource estimate

Kagara has informed the market that a new resource estimate for the Red Dome deposit at Chillagoe in north Queensland has been completed.

Kagara has informed the market that a new resource estimate for the Red Dome deposit at Chillagoe in north Queensland has been completed.

The new inferred resource at 0.2 gram per tonne gold cut-off is 45.0 million tonnes grading 1.00 gram per tonne gold, 0.3% copper and 8 grams per tonne silver.

Contained gold at Red Dome now totals 1.447 million ounces, which represents a 160% increase on the previous resource. Contained copper metal also increases by 300% to 120,000 tonnes.

The resource was calculated using a cross sectional algorithm based on sections 25 m apart and remains open to the east, west and at depth.

Red Dome is located about three kilometres south of the Mungana gold deposit which has an inferred resource at the same cu-off of 45.9 million tonnes at 0.76 grams per tonne gold, 0.13% copper and 12 grams per tonne silver.

Mungana Goldmines will acquire the rights to gold within Kagara’s north Queensland Chillagoe tenements.

Amongst other assets, Mungana Goldmines will acquire the right to inferred and indicated resources totalling 2.6 million ounces of gold, 180,000 tonnes of copper and 26 million ounces of silver contained within the Red Dome and Mungana porphyry deposits.

According to the company, future exploration at Red Dome will focus on diamond drilling to increase the integrity of the resource together with a pre-feasibility study to look at an underground bulk mining operation incorporating both the Red Dome and the Mungana resources.

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