menzies gold project jv, page-3

Unfortunately Julia creek is going nowhere fast with current funding constraints and still no pfs.....

See below, the Menzies gold “side project” is not a bad idea me thinks, compared to white range it may make some dosh.

Very old figures for mining costs but you get this idea,

http://www.regalresources.com.au/menzies.html

"The Menzies Project covers approximately 36.5 sq km over 20km of strike of the historic Menzies Mining Centre. The tenements are all granted Mining Leases except for two which are under application. The bitumen Goldfields Highway from Kalgoorlie runs through the eastern part of the tenements. The tenements have Notice of Intents (NOI's) in place which will allow production to commence within a short time frame.

The project contains JORC compliant resources of 2,100,709t @ 2.55g/t Au for 172,056 oz in a number of separate deposits. The resources include optimised reserves estimated at a gold price of A$750 totalling 288,595t @ 3.8g/t for 35,304 oz. The project will be mined in stages with the first stage producing approximately 25,000oz from treating 157,500t at an average grade of 4.90 g/t Au over a 16 month period at an average cash cost of A$432/oz. Gross operating profit is anticipated to be between A$6.7M and A$7.9M over the period. Mining will be undertaken by contractors and the ore trucked to a nearby treatment plant. Capital requirements are low and start-up capital costs are estimated to be under $500,000.

In addition to the open pit potential, there remains a significant underground potential. Apart from the historic Yunndaga mine that was developed to 600 metres depth, the remainder were mined to only about 200 metres depth (or less). Only a few of the more recent drill holes have tested the down dip and down plunge projected extensions of the lodes. Regal considers that there is excellent potential to increase the current 171,000 oz resource through testing of strike, depth and plunge projections. Intersections from deeper drilling include 2m @ 9.1g/t (from 140 metres), 4m @ 10.5g/t (from 141 metres), 2m @ 23.7g/t (from 132 metres) and 2m @ 16.0g/t (from 150 metres) have been encountered. Near surface strike extensions adjacent to current pits include 6m @ 24.8g/t, 10m @ 5.95g/t, 4m @ 12.9g/t, 10m @ 8.58g/t, 8m @ 8.21g/t, 7m @ 9.41g/t, 3m @ 32.98g/t, 6m @ 2.25g/t.

There are some early stage targets defined through soil sampling and shallow RAB drilling that remain largely untested. These include 2m @ 8.59g/t, 5m @ 18.3g/t, 5m @ 6.61g/t, 5m @ 2.49g/t, 5m @ 12.81g/t.

Gold mineralisation at Menzies is associated with quartz-sericite schist units and quartz reefs that are sandwiched between a sequence of hanging wall shaley sediments and footwall amphibolites. The sequence strikes northwest and dips steeply southwest; with the best ore grades located within south-southwest plunging ore shoots.

The tenements also have lateritic nickel mineralisation at the Acacia Ridge Deposit which has the potential to produce large tonnages of potentially economic nickel/cobalt mineralization. Intersections of 14 metres grading 0.91% Ni and 0.17% Co, 15 metres grading 0.776% Ni and 0.17% Co have been encountered."