With the MRE update TG6 note that both the Western and Eastern Domains are essentially similar in composition and genetically related so I was looking to find details about the eastern deposits. I knew there was an Earl Grey gold mine where extension drilling hit thick pegmatites that were to become the world class Mt Holland Lithium mine. I was unfamiliar with the history of the other deposits.
In looking up details on the other eastern deposits it became clear that the residual JORC of gold deposits that could potentially be available to purchase and add scale to what TG6 are doing in Forrestania wasn't the 1m oz that had been discussed several weeks back.
While this exploration provided clarity that the Bounty mine was mined down to 900m with known ore down to ~1.2m and that Blue Vein had ore down to at least 400m below surface, these mines were set back from the volcanic rock / sediment rock boundary that the wedge of "yellow" in the map below shows. The mines that might provide better clues as to how far east Van Uden could extend to the East are Teddy Bear, Jasmine, Darjeeling, Earl Grey, Bush Pig & Razorback. Earl Grey has a gold intercept ~300m deep. I'm still seeing what I can find on them.
The residual after mining JORC deposits for several of these deposits are small but I'm not sure whether that's because the gold mineralisation ends or whether the near surface grades weren't high enough to warrant depth extension drilling for a potential UG operation. From this it became clear I'd speculated at the residual Mt Holland assets having a potential current value far higher than they probably do. The primary remaining asset to the east is the Blue Vien gold deposit. Convergent Minerals did a feasibility study on Blue Vein and Kidman continued to look at its potential.
I'm not sure if Wesfarmers has done anything further with it since it was acquired as part of their acquisition of the Mt Holland lithium project but I don't think they have. Its potentially on the market, but with a historical JORC of 4.849mt @ 2.39g/t for 372.5k oz it probably has a price tag somewhat higher than what TG6 paid for Van Uden. The 11 year ago feasibility work from 2014 indicated mining could occur at A$1,188/oz (which will have increased a lot with inflation) but also indicated 94% recoveries (which is good if that becomes what is possible from Van Uden ore). UG mining and processing infrastructure costs took the cost to the point there wasn't enough margin to progress.
The Blue Vein processing flow sheet is the same one that TG6 is likely to need if met test work continues to show high recoveries with a 75um grind size and low recoveries with larger grind sizes. The processing cost for the flow sheet is interesting ($30.50/ton of ore), but will have increased with inflation. The modest size (only 300kt pa of ore) probably means the bigger operations of Edna May and Barto's Marvel Loch who are the primary toll processing contenders may have a 2014 cost structure lower than this. Generic estimates of inflation in Australia since 2014 mean the starting point would be to add 50% to these costs and perhaps a bit more.
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