Ann: Ricciardo MRE Delivers 99% Increase in Ounces, page-9

Here's a summary (from https://newsrush.ai/share/?document=41089&company=1659)

Warriedar Resources significantly boosted its Ricciardo gold deposit's mineral resource estimate by 99%, to 947,500 ounces, driven by targeted exploration.

Summary

• Warriedar Resources announced a massive 99% increase in the gold ounces at its Ricciardo deposit, bringing the total to 947,500 ounces.
• The updated Mineral Resource Estimate (MRE) for Ricciardo is 16.44 million tonnes at 1.8 g/t gold.
• This increase was achieved with approximately 15,000 meters of targeted drilling, at a cost of approximately A$16 per ounce.
• The Ricciardo deposit contains 467,500 ounces of open-pit gold resources and 480,000 ounces of underground gold resources.
• The company's total Golden Range Project Mineral Resources now exceed 1.28 million ounces, a 58% increase.
• The Ricciardo system remains open at depth and along strike, suggesting further growth potential.
• The company's exploration strategy of targeting fresh rock extensions under shallow existing pits has proven successful.

Sentiment

Score: 9

Explanation: The significant resource increase, low exploration cost, and positive management commentary strongly suggest a positive outlook for the company.

Highlights

• 99% increase in Ricciardo MRE contained gold ounces, totaling 947,500 ounces
• All-in discovery cost of approximately A$16/oz
• 16.44 Mt @ 1.8 g/t Au for 947.5 koz gold in the updated MRE for the Ricciardo Deposit
• 467.5 koz @ 1.6 g/t Au open-pit gold Resource (75% M&I)
• 480.0 koz @ 2.0 g/t Au underground gold Resource
• Total Golden Range Project Mineral Resources now stand at over 1.28 Moz gold, a 58% increase

Positives

• A 99% increase in gold ounces at the Ricciardo deposit, reaching 947,500 ounces.
• Low all-in discovery cost of approximately A$16 per ounce.
• Significant increase in Measured and Indicated resources within the open-pit shell.
• The Ricciardo system remains open at depth and along strike, indicating further exploration potential.
• Successful validation of the company's exploration strategy.
• A 58% increase in total Golden Range Project Mineral Resources, exceeding 1.28 million ounces.

Negatives

• Limited antimony assay data and metallurgy, preventing the inclusion of antimony in the current resource estimate.
• No detailed mining studies have been completed, only high-level parameters used in the open-cut optimiser.

Risks

• The Ricciardo system, while open at depth and along strike, still requires further exploration to confirm the extent of mineralization.
• Commodity price fluctuations could impact the economic viability of the project.
• Potential delays in exploration or development activities.
• Uncertainty regarding the economic potential of antimony mineralization.

Future Outlook

The company is excited about the outlook for the wider corridor of gold deposits and plans to continue its simple strategy of drilling below shallow open pits to find mineable ounces. The Ricciardo system remains open down-plunge, and the entire 25km Golden Corridor offers similar potential upside.

Management Comments

• 'This is the result we have been working towards all year. With less than 15,000m of targeted, efficient drilling we have added over 470 koz to the Ricciardo deposit, doubling the Resource.'
• 'We are excited by both the outcome itself, and the outlook that it delivers us for the wider corridor of gold deposits. The simple strategy of drilling below shallow open pits to find mineable ounces worked exceptionally well for our producing neighbours. The validity of this strategy is now beyond doubt, for us.'
• 'Not only is the Ricciardo system still wide open down-plunge, but the entire 25km long Golden Corridor offers similar potential upside from such a relatively simple drilling focus.'
• 'In the middle of the infrastructure-rich southern Murchison, and located on existing Mining Leases, the opportunity in front of us is utterly irresistible.'

Industry Context

This announcement positions Warriedar Resources favorably within the Southern Murchison gold region, showcasing a successful exploration strategy that mirrors the successes of its neighboring producers. The discovery of significant antimony mineralization also adds to the company's potential within the growing critical minerals market.

Next Steps

• Continue RC and diamond core drilling programs to extend the identified mineralisation along strike and toward depth.
• Test repeated parallel ore bodies.

Key Dates

• 28 November 2022: ASX release announcing Major Gold Project Acquisition
• 30 September 2024: ASX announcement reporting Further Strong Extensional Diamond Drill Results
• 1 October 2024: ASX announcement reporting Continued Delivery of High-Grade Antimony (Sb) Mineralisation at Ricciardo
• 28 October 2024: ASX release announcing Initial Metallurgical Test work Delivers High Gold Recoveries
• 18 November 2024: Date of the Ricciardo Project Mineral Resource Estimate Update announcement

Keywords

Gold, Mineral Resource Estimate, Ricciardo Deposit, Golden Range Project, Exploration, Western Australia, Warriedar Resources, Murchison, Mining