“Millennium has been transformed into a robust mid-tier Australian gold miner with consistent production, healthy margins, excellent cashflow, a strong balance sheet and immense exploration upside,” Mr Dovaston said.
“The aggressive exploration campaign launched at Nullagine has also been extremely successful. Not only have we grown the gold inventory to 1.2 million ounces by pursuing shallow brownfields targets, but we have also established that gold mineralisation is present at depth.
“This has potentially huge implications for Millennium as we continue our drive to grow the mine life at Nullagine.
Then we go to this Nov 3rd., I will give you another hint. Sorry map did not show! Tells 1000 words and in my summary = the next super pit.
Millennium Minerals Limited (Millennium or Company – ASX: MOY) is pleased to announce that it has discovered a new 2.25 km-long zone of mineralisation at its Nullagine Gold Project (Nullagine or Project) in WA’s Pilbara region (Figure 1 and Figure 2).
The drilling results highlight the strong potential to establish open pit operations along this trend, which stretches from the All Nations North deposit in the north-east to the Hopetoun deposit to the south-west.
Recent drilling has also returned strong results from Majuba Hill and Billjim South, both of which are close to the Project’s existing mining centres.
Millennium has had three RC drilling rigs as well as a diamond rig (where required) operating at the Project for most of 2016 to assist with delineation of new Mineral Resources.
Given the success of the exploration program and its positive impact on Nullagine’s mine life, Millennium has increased the 2016 exploration budget by ~$4 million to $13.9 million with a similar expenditure expected next year.
Figure 1: Nullagine Gold Project Location Plan over regional geology
The Company recently announced that Ore Reserves at Nullagine had increased by 16 per cent to 184,300 oz and Mineral Resources had risen by 12 per cent to 1.2 M oz (ASX Release 27 October 2016). These increases came despite 45,000 oz being mined since the previous estimates.
Importantly, around 75 per cent of the 1.2 M oz Mineral Resource is in the Measured and Indicated category.
MOY Price at posting:
27.0¢ Sentiment: Buy Disclosure: Held
