Navigator Resources’ objective is for Leonora to become its second operating gold mine, after Bronzewing, moving the Company into mid-tier gold producer status. To progress towards this objective Navigator conducted a trial mining and milling program between February and August 2010. A total of 74,200t of ore was milled at SBM's Leonora processing facility, comprising an estimated 60,200to of Bruno supergene ore and 14,000t of Mert 2 hardrock blending ore. Gold produced from ore treatment at SBM's plant was 4,450oz.
Due to the favourable performance of the Bruno supergene ore, the Company decided to complete mining of Bruno Pit. As a result, a total of 100,000t of ore was mined from the Bruno open pit. The balance of 39,800t of Bruno ore was hauled to the Bronzewing Gold Project for treatment. Sampling of this material on the Bronzewing ROM stockpile supported ore grades seen at SBM's Leonora plant. Estimated gold recovery from Bruno ore being processed at Bronzewing was 2,773oz.
In summary, total ore processed in the trial was 114,000t for 7,223oz of recovered gold generating positve net cashlow of ~$2 million.
Key outcomes from the Leonora trial are:
- free dig open pit mining of supergene ore confirmed, with actual unit mining costs/BCM significantly lower than budget;
- overall supergene ore grade of 2.33g/t was 40% higher than the mine plan grade; and
- gold recovery confirmed at more than 95%.
Since the trial, Navigator has sought and received tender submissions for the design and construction of a purpose built, low capital processing facility to treat Cardinia supergene ore. Financial modelling incorporating these capital costs is progressing.
| Trial Mining Activities at Leonora | Mertondale Homestead - Office | St Barbara's Gwalia Mill |
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Further images are available in the Photo Gallery.