AFTER upgrading the resource estimate for the Wombola Pit at its...

AFTER upgrading the resource estimate for the Wombola Pit at its North Monger gold project near Kalgoorlie, Cortona Resources believes it can achieve its 2007 revenue ambitions by toll treating ore at a nearby processing plant.

Cortona's managing director Peter van der Borgh told MiningNews.net the company was hopeful that one of three mills within 50 kilometres of North Monger will do a deal to blend oxide ore from the Wombola Pit with its own.

The three facilities in question are the St Ives, KCGM and Jubilee mills.

Van der Borgh wouldn't be drawn on whether discussions have taken place at this stage, though he said he was hopeful a deal is "not too far away". He pointed out lower grade ore from greater distances is already being blended by at least one of these facilities.

Consultants Resource Evaluations calculated the new resource for the Wombola Pit, which came in at 304,000 tonnes grading 2.7 grams per tonne gold for 26,800 ounces. Some 11,000oz of the resource is contained in the indicated category with the balance inferred.

Van der Borgh said about 90% of the resource was oxide.

He said both Resource Evaluations and Cortona's exploration team believed there was considerable potential for extensions to the resource.

The company is expecting an RC rig on site at North Monger before the end of the month that will focus on extensions to the Wombola Pit and also drill at the Wombola Dam and Hammer and Tap prospects.

Cortona is hopeful drilling at Wombola Dam will provide an initial resource estimate.