Bundarra Project
The Bundarra project covers approximately 100kms² and encompasses all the major gold deposits and prospects in the Bundarra area. The project area includes the Celtic and Great Western projects (100% Terrain) and the Black Cat joint venture, where Terrain is currently increasing its equity from 60% to 75% through the expenditure of $750,000.
Bundarra: Geology & Prospects
A JORC compliant resource estimate of 4.96mt @ 2.0g/t gold (321,000 oz) was announced in August 2008. Since that time the Company has been investigating various mining options. Open pit mine planning has been completed on the Celtic deposit and scoping studies have generated open pit mine plans for the Wonder North and Great Western deposits. In addition a conceptual underground mine study has been undertaken on the Great Western deposit.
At the Celtic deposit the pre-existing block model and mine plan have been discarded and a new mine study has identified 6,000 oz of gold that can be extracted from beneath the floor of the existing open cut for a cash cost below A$700 per oz. All statutory approvals to mine the deposit have been received from the WA State Government and negotiations to toll treat the ore are currently in progress. Mining is expected to commence before the end of 2010.
At A$1200 per oz the Wonder North open pit contains 697,200t @ 2.45g/t gold with 55,326 recoverable oz (at a 1g/t gold cut-off). A further study of the high grade (+3g/t gold) core of the deposit has identified a resource of 621,600t @ 4.8g/t gold (96,080 oz) extending below the floor of the proposed open cut. A study to mine this deposit underground is currently in progress. The deposit remains open down dip and down plunge, plus a number of satellite lodes have been identified with potential for “bonanza” grades. Further drilling programs are planned.
Bundarra Project: Resources (1g/t gold cut off)
Deposit |
Resources |
Measured |
Indicated |
Inferred |
Totals |
Wonder North |
Tonnes |
354,000 |
872,000 |
1,314,000 |
2,540,000 |
Grade |
2.3 |
2.4 |
1.9 |
2.1 |
Ounces |
26,000 |
66,500 |
80,200 |
172,600 |
Celtic |
Tonnes |
683,900 |
199,400 |
204,400 |
1,088,000 |
Grade |
1.8 |
1.5 |
1.5 |
1.7 |
Ounces |
39,300 |
9,300 |
9,500 |
58,100 |
Great Western |
Tonnes |
58,000 |
284,000 |
131,000 |
473,000 |
Grade |
3.0 |
2.8 |
2.3 |
2.7 |
Ounces |
5,600 |
25,800 |
9,500 |
40,900 |
Bluebush |
Tonnes |
|
|
726,000 |
726,000 |
Grade |
|
|
1.7 |
1.7 |
Ounces |
|
|
38,900 |
38,900 |
Black Cat |
Tonnes |
|
|
134,000 |
134,000 |
Grade |
|
|
2.5 |
2.5 |
Ounces |
|
|
10,600 |
10,600 |
TOTALS |
Tonnes |
1,095,900 |
1,355,400 |
2,509,400 |
4,961,000 |
Grade |
2.0 |
2.4 |
1.9 |
2.0 |
Ounces |
70,900 |
101,600 |
148,700 |
321,200 |
Wonder North Deposit: High Grade (+3g/t) Resource
Classification |
Tonnes |
Grade g/t
Gold |
Gold
Ounces |
Measured |
0 |
0 |
0 |
Indicated |
494,450 |
4.9 |
78,080 |
Inferred |
127,150 |
4.4 |
18,000 |
TOTAL |
621,600 |
4.8 |
96,080 |
Long Section of Wonder North showing current pit (orange), main +3g/t gold zone (magenta) up to 250m below surface, and satellite lodes (green) to the grid east.
At Great Western the conceptual mine plan involves an open cut, generating in the order of 10,000 oz of gold; to provide access to an underground operation with the potential to mine around 45,000 oz, at a cash cost in the vicinity of A$750 per oz. The deposit is open at depth and further drilling will be required to establish the full size of the potential underground mining operation.
Great Western Gold Deposit
(Longitudinal Section)
Proposed Mine Plan (August 2009)
There are a number of other gold targets at Bundarra exhibiting similar geological features to the known deposits, including:
Bluebush
An Inferred Resource of 726,000t @ 1.7g/t gold (39,000 oz) requires closer spaced drilling to define a mineable reserve.
Bluebush East
RAB drill intersections including: 3m @ 2.57g/t gold from 24m, 18m @ 1.26g/t gold from 30m and 11m @ 1.03g/t gold from 28m need to be followed up with a RC drilling program.
Craig/Katalina (Black Cat JV, TMX earning 75%)
Four geochemical anomalies: up to 50x background, up to 160m wide and up to 1,000m long coincide with shear zones extending along strike from the historic Craig and Katalina workings. Previous drill intercepts include:
- Craig: 6m @ 37.83g/t gold from 15m, 4m @ 2.04g/t gold from 11m and 6m@ 2.34g/t gold from 6m.
- Katalina: 6m @ 3.83g/t gold from 12m, 7m @ 2.86g/t gold from 0m and 9m @ 2.31g/t gold from 10m.