EganStreet Resources, previously known as Auricup Resources Limited, has been granted a Program of Work (POW) approval by the Department of Mines and Petroleum for phase 1 of the exploration program at the Rothsay Gold Project in Western Australia.
EganStreet said Westralian Diamond Drillers has already commenced mobilising on site, with drilling to commence immediately.
According to the company, the drilling program – which consists of 6 diamond drill holes for a total of 2135m – is designed to infill a portion of the existing inferred Mineral Resource on “A” Shear located beneath an area that is being evaluated in a scoping study, and is intended to increase confidence in that area.
EganStreet also announced that a scoping study examining the financial viability of commencing gold production at the Rothsay Gold Project based on the existing Indicated Mineral Resource (218kt @ 11.7g/t Au) has commenced.
“The Scoping study aims to estimate the costs (+/- 40%) of rehabilitation of existing underground infrastructure (principally portal and decline), re-establishment of surface infrastructure (tailings dam), process plant, camp and office construction, operating expenditure for mining, processing and administration as well as financial costs,” the company told the ASX.
“At present, a mine design is being developed based on Indicate Mineral Resources only. Mine production physicals will be used to estimate revenues based on historical metallurgical recoveries combined with more recent metallurgical testing on diamond drill core.”
The company said that as part of the study, it has sought indications of interest and indicative capital and operating costings from suitably qualified engineering and mining contractors.
“The outcome of the scoping study will determine the next steps for EganStreet Resources in relation to phase 2 drilling and/or commencement of more detailed feasibility study,” reads the ASX announcement.