Some better-than-expected infill-drilling results have prompted Australian-based Croesus Mining to go ahead with a resumption of mining at the Scotia open pit, 30 km south of its Norseman processing facility in Western Australia.
In early February, the company said mining at Scotia would be deferred owing to higher-than-expected contract mining rates and a fall in the Australian dollar gold price.
The Scotia open pit is expected to produce 20,000 oz. of gold at an average cash cost of A$400 per oz. over six months. Plans call fro developing the orebody to the north along strike from the existing decline; the first ore would be sourced by May or June.
At the end of June 2004, the Scotia open pit was home to probable reserve totalling 63,000 tonnes grading 9.4 grams gold per tonne; another 116,000 tonnes of underground material grades 8.2 grams gold.
Recent drilling has identified a fourth lens at Scotia’s stacked system. Highlights include 4.1 metres grading 12.1 grams gold, 1.9 metres of 45 grams, 2.6 metres at 41.7 grams, and 0.6 metre running 134 grams. The new lens is situated about 25 metres below Lens 3, which currently hosts 18,000 oz. of reserves.
Croesus plans shallow exploration and drilling along strike of the existing open pits and underground workings this year.
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