RNC Minerals has recovered an estimated 1750 ounces of coarse gold from 274 kilograms of rock at the Beta Hunt mine in Western Australia.
At current Australian dollar prices, the gold find has an estimated value of $3.9 million.
The discovery occurred 160 metres south and 25 metres below the Father’s Day Vein discovery, on the same level as the 987 ounces of coarse gold, worth approximately $1.9 million, found in June this year.
RNC considers the discoveries as a “periodic significant bonus” to mine production and they are not included in the company’s mineral resource estimate.
Beta Hunt has a mineral resource estimate of 944,000 ounces at 2.9 grams per tonne and an inferred mineral resource of 406,000 ounces at 3.1 grams per tonne.
RNC chairman and chief executive officer Paul Andre Huet said the company would quickly monetise the gold to capitalise on current $2250/ounce Australian gold prices.
“Once again we have encountered an area of high-grade coarse gold in the same geological setting as the Father’s Day Vein. Approximately 20 ounces of gold was expected to be recovered from this area where 1750 ounces were recovered,” Huet said.
“This further highlights the potential of the Beta Hunt mine, demonstrating the significant upside impact these high-grade discoveries can have on operational cash flow generation.”
The gold find is another in a long line of major discoveries for the Canadian company at Beta Hunt.
In 2018, RNC revealed stones with 2440 ounce and1620 ounce of gold worth $6.8 million, along with another 1000-ounce gold find.
This year, another 987 ounces of coarse gold was discovered worth approximately $1.9 million at the time.
RNC has also completed its $50 million acquisition of the Higginsville gold operation from Westgold Resources this year, which is being used to provide low-cost milling for the Beta Hunt mine.
This reduces milling costs by C$15 ($16) a tonne, a reduction of 35 per cent.
“While these high-grade discoveries are welcome contributors to our bottom line, we remain squarely focused on our newly outlined cost-cutting strategy at both the operational and corporate levels,” Huet said.