A “pleased” Perseus Mining (ASX:PRU) is now expecting an eventual extension to the mine life of its Nyanzaga Gold Project alongside Mineral Resource Estimate and Ore Reserve upgrades after encouraging drilling.
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The Oz explorer has been running a drill program at its Tanzania site to further inform and advance an open pit mining scenario first trumped up in April.
Through to June, the gold miner has been digging up “very encouraging” results – including standout intersections ranging from 23 metres at 20.87 grams per tonne gold, to 84 metres at 3.24 grams per tonne, and 52 metres at 9.69g/t.
Many of the better hits were spotted under Perseus’ current dig site, suggesting the Oz explorer could find deeper mineralisation once it sets up underground works.
The biggest news, though, focuses on tenure – Perseus says a windfall extension to the estimated life of the Nyanzaga mine is now on the cards.
“The drill results announced today reinforce our confidence in our ability to extend Nyanzaga’s Mineral Resources and Reserves and, as a result, potentially extend the life of the mine,” Perseus’ CEO, Jeff Quartermaine, said.
More drilling will be required to scout out how far the mineralisation extends, the company chief added, though the feeling in Perseus’ camp is “further exploitation of the mineralisation, including the potential for application of UG mining methods, may be possible” – and would confirm a life extension.
“Of particular interest to us are the excellent drill results that have been achieved as part of the current drill program at depths below the currently envisaged large open pit,” Mr Quartermaine continued.
Perseus’ Nyanzaga gold project currently has a production runway estimate of around 11 years for its first-phase drilling, through to around 2036 at best.
The miner could set up shop in Tanzania well into the 2040s if predictions are true.
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All still relatively hypothetical, of course – Perseus has to do more before it can confirm anything, and, to that end, it’s lining up more geotechnical, metallurgical, and sterilisation drilling that will be completed by December.
Those newly-planned programs and the still-ongoing Nyanzaga digging will both be combined into an updated Ore Reserve in March next year, too.
Today, PRU shares have climbed +4.5% through to lunchtime, to $3.69 each.
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