Southern Cross hints at early Dulcie start-up
Claire Svircas --MINING NEWS --
Wednesday, 30 September 2009
SOUTHERN Cross Goldfields says it is aiming to take advantage of the favourable gold price and fast-track production at its Dulcie gold laterite project in Western Australia, with production tipped to start at the end of 2010.
A recently completed campaign of shallow reverse circulation drilling has confirmed extensive low-grade laterite mineralisation throughout the tenements, with four main areas delineated.
The results include 0.6m at 1.4 grams per tonne gold, 0.7m at 0.88gpt gold and 2m at 1.03gpt gold.
Managing director Tony Truelove said the results confirmed the distribution and grade of gold-mineralised laterite within the Dulcie project and would mean a quick move towards production, with the release of an initial resource estimate expected in October.
Meanwhile, feasibility studies to determine metallurgical recoveries at various crush sizes, capital requirements and cost estimates have been commissioned and are planned for completion before the end of this calendar year.
In addition, mining lease applications have been lodged, and flora and fauna surveys completed.
Truelove anticipates it will take up to six months to have the lease granted, and a further five months for clearing permits and mining approvals.
“Hence, it is possible that mining could begin within nine to 11 months if all goes well,” he said.
“This means that the target for first gold pour is 12 to 15 months.”
Shares in the Perth-based junior were untraded today at 10c.
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