Open pit mining has recommenced at Black Reef, near Wehlain...

Open pit mining has recommenced at Black Reef, near Wehla
in Central Victoria
? Trial open pit to determine the grade and structural controls
on gold mineralisation in the Wehla Goldfield
? Ore scheduled for processing during June
? Mining expected to justify a larger open pit operation
The Directors of Octagonal Resources Limited (ASX: ORS) (“Octagonal” or
“Company”) are pleased to announce that the Company has recommenced
open pit mining activities at the Black Reef near Wehla in Central Victoria,
with first gold production expected during June.
The Wehla Goldfield is located 60 kilometres from the Company’s Porcupine
Flat gold processing plant at Maldon and historically produced
approximately 100,000 ounces of high-grade “nuggetty” gold mineralisation.
Previous drilling in the goldfield has intersected high-grade gold, however
the grade distribution and structural controls on this mineralisation are not
well understood.
Octagonal is resolving these issues by mining a trial open pit at Black Reef
in an area where a costean returned 14 metres grading 4.6 g/t gold and
drilling intersected 5 metres grading 35.4 g/t gold and 5 metres grading 14.9
g/t gold.
Mining of the Black Reef open pit commenced in August 2012 with the
removal and stockpiling of soil and sub-soil, however development of the
open pit was placed on hold shortly thereafter so that the Company could
focus on the removal and processing of tailings from the Kangaroo Flat Gold
Mine near Bendigo. Now that processing of this ore source is nearing
completion, mining of the Black Reef open pit has recommenced and ore is
scheduled for processing after the Kangaroo Flat tailings.
Once the Company has gained a better understanding of the nugget effect
and structural controls on the distribution of gold in the Wehla Goldfield it is
expected that this information will help justify a larger open pit mining
operation in the goldfield.
Additional information relating to Octagonal and its various mining and
exploration projects can be found on the Company’s website