LESS than two months after completion of the management buyout of the Wiluna gold mine in Western Australia from Newmont Mining, Agincourt Resources says it has potentially made the best discovery at the project since the million ounce Bulletin ore system was found in the early 1990s.
The Calais discovery features a best intersection of 18.5m grading 26.9gpt, covers a strike length of at least 100m and has an estimated true width of up to 10m.
Agincourt said it remains open up to 400m to the north, 200m to the south, at depth, and above current intersections.
Significantly, it also located within 100m of existing underground development.
Agincourt said two rigs are continuing to test Calais, and that a significant increase to the mine's reserve is "anticipated".
Earlier this month the company said reserves at the mine totalled 204,000 ounces, inside 831,500oz of resources.
Wiluna currently produces around 120,000oz per annum, generating annual cash flow of over $5 million at a gold price of $525/oz.
A protracted sale process at Wiluna was completed late last year when Newmont Mining sold the project for $5.65 million.
Dr Tim Sugden, general manager of Wiluna for Newmont, is managing director of Agincourt, which emerged from listed dot.com outfit Gowit.
A total of 16.2 million shares plus 4.5 million shares were issued to Sugden and fellow vendors (and Wiluna mine management), Peter Bowler and Roy Arthur.
The three are on the board of Agincourt, as are former Normandy Mining and Gowit executive Ian Middlemas and resources identity and lawyer Craig Readhead, the latter who is chairman.
Agincourt completed a $1.5 million raising in December, with the 30 cent shares issued currently changing hands for $1.57, up 32 cents on yesterday's close.
AGC Price at posting:
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