Bellamel Mining Ltd, which listed last November on the mothballed Kalgoorlie West operations of Croesus Mining - then known as Binduli -- is now showing it is developing substantial sulphide ore resources over a series of oxide pits that operated mainly in the 1990s.
Bellamel (ASX: BMM) today detailed assays from two new drill holes beneath the Centurion open pit that took in 42 metres grading 2.06 grams/tonne gold from 278 metres depth, including 10m @ 4.71 g/t, while the other hole had a best intercept from 350m of 4m @ 3.34 g/t gold.
Company executive Tim Flavel told Mineweb that the Kalgoorlie West area was showing good scope for mineralisation at depth. He said despite the 10,000 drill holes by Croesus and other explorers in the area, less than 150 went below 100m depth.
Bellamel acquired the Kalgoorlie West leases from the administrators of Croesus after it got into financial difficulty by undertaking to take over the mine closure remedial commitments.
At that time there were JORC Code resources at low grades on the licences of 690,000 ounces and Flavel said that the gold price of the early 2000s were in stark contract to the price today. (Today's gold price of $US906.80/oz converts to $A946/oz - a price that has slipped below the heady +$A1,000/oz by what is now a record $A price against the weaker Greenback of $0.958).
Since taking over the leases Bellamel has been able to lift the total resources in 12 deposits to 43.979 million tonnes grading 1.19 g/t for 1.7 M oz. Two deposits that have been upgraded in by Bellamel are Centurion's measured reserve of 1.854 Mt @ 1.2 g/t gold and an indicated 3.134 Mt @ 1.17 g/t and Fort William's indicated 3.467 Mt @ 1.91 g/t gold.
Flavel said the company was evaluating options for development that could deliver ore to one of several hungry gold plants in the Kalgoorlie region and, through ongoing exploration success, contemplating a stand-alone plant.
The company said today that the two drill results are visually similar to the high grade ECM ore body, previously mined in the Centurion open cut.
Bellamel said high grade primary gold mineralisation has been found at both the Centurion and Ben Hur deposits.
Additional drilling has since been undertaken at both deposits and results are pending, the company said.
The restructured Croesus Mining still holds the Norseman gold operations, well south of Kalgoorlie.