Definitely the right address if Yamarna Shear Zone is an...

Definitely the right address if Yamarna Shear Zone is an extension of IOC/Anglo's Tropicana (5Moz).

Also worth noting is this extract from EKM's website re Golden Sands which leases (65km x 35km) extend south to within 25km of IOC's leases!

"The discovery of the potentially multi-million ounce gold deposits beneath transported cover at Tropicana 100km to the south of Yamarna highlights the potential existing in this poorly explored region on the margin of the Yilgarn.

The Golden Sands project area now totals about 1,500km2 in area and covers a strike length of about 65kms. The southern boundary of the tenements is about 25km from the Tropicana and Havana deposits."

Mineweb newsletter 11/11/2010

PERTH -

"Perth-based nickel miner Independence Group NL (ASX: IGO), which retains a 30% interest in Tropicana, said that over a known 10 years life the project would produce 3.45 million oz of gold at a projected cash cost of between A$710-730/ounce, including royalties.

The open pit operation has a proven-probable reserve of 48 Mt at a grade of 2.2 grams/tonne gold.

Studies on this project have been protracted, but ongoing exploration has continued to produce deeper and lateral discoveries on what must be the largest gold exploration holding in Australia - stretching on the eastern side from near Laverton in the north to east of Higginsville in the south.

Independence said the project should produce between 470-490,000 oz per annum and the estimated capital and working capital was expected to be between A$690-740 million in real terms or A$725-755/oz (nominal - including escalation).

Independence managing director Chris Bonwick said the estimated payback was expected to take 2.2 years using a gold price of $A1,300/oz using $A=$US parity and an oil price of $US85/barrel.

First gold production was expected in December 2013.

Tropicana has been on amber light for some time, partly because of talks between 70% owner AngloGold Ashanti and Independence over how it would be developed, and financed. It was originally a prize grass roots target when Independence floated but it was beyond the exploration and funding capacity of the then junior company.

Independence has been one of the top performing companies over the past decade, primarily through its mining operation at the big Long nickel shaft it purchased from WMC Resources (before it was taken over by BHP Billiton), and it has paid handsome dividends.

However, it's tight capital position will now change after announcing earlier this month it would undertake a A$164.3 million (US$164.7 million) capital raising. This was made up of an institutional placement of A$113.8million, since achieved, and a one-for-15 non renounceable offer to shareholders that would raise A$50.6 million. The price of all these shares was set at A$6.65 (US$6.66) each.

The joint venture has completed a bankable feasibility on the section of the huge Tropicana leases that takes in the planned Tropicana, Havana and Havana open cut deposits, but excludes the exciting new Boston Shaker deposit and the potential for the Havana Deeps as an underground mine.

The target mining area is 330 km north east of Kalgoorlie and 200 km south east of Laverton, and like all modern mine developments in Western Australia this operation will work as a fly-in, fly-out operation, and it will use contract mining.

This new development along with the recently commissioned Boddington gold mine for Newmont Mining Corporation - to ramp up to 1 M oz per annum - will strengthen Western Australia's position as Australia's top gold mining State."

Guys, it's never over til the fat lady sings and let's hope she never has to even start clearing her throat.

Cheers all,
chicken