🕐16.09.10 - 08:54 Uhr
Reeds Gold Strategy and Project Update
Reed Resources Limited
ASX Announcement
15 September 2010
REEDS GOLD STRATEGY AND PROJECT UPDATE
The Companys strategy is to expand the existing resource base at Comet
Vale through a staged RC and diamond drilling program and delineate
sufficient reserves to resume production at the Sand Queen Gold Mine as a
mechanised decline operation.
New resource estimates and reserve
calculations are expected by Christmas 2010.
These results will also
determine the processing rate and scale of the Nimbus Mill refurbishment
and recommissioning, for both internal and third‐party requirements.
RESOURCE EXTENSION DRILLING
A staged drilling program targeting both the existing Sand Queen/Sand
George Lodes and the new parallel Sand Prince/Princess Grace lode system
has commenced and is expected to be completed in early November.
Results
will be released in due course.
Phase 1 of the drilling will specifically
target the Princess Grace structure that lies directly beneath the designed
Sand Prince West Open Pit, which is also planned to host the portal for a
potential decline (Figure 2).
Phase 2 of the drilling will specifically target any areas requiring
further definition, including diamond tails of drill holes into the Sand
Queen / Sand George Lodes.
It is anticipated that this drilling will total
10,000m.
REGIONAL EXPLORATION
In addition to the resource extension drilling, a campaign of exploration
drilling has been planned and will be drilled on completion of the Resource
Expansion campaign.
This is expected to total an initial 5,000m and is
designed to test the main Comet Vale Shear both North and South of the Sand
Queen mine.
SAND PRINCE RESERVE
The Sand Prince West Pit was optimised and redesigned by Minecomp Pty Ltd.
Extensional drilling is designed to delineate the Princess Grace lode
system and thus provide impetus for a decline access into both the Princess
Grace and Sand Queen/Sand George Lodes.
Tabe 1 shows a reserve summary for
the Sand Prince West pit above an undiluted grade of 1.5g/t @ $1,250/oz
gold price.
NIMBUS PROCESSING PLANT
The Company is in receipt of operating and capital cost estimates for the
conversion and refurbishment of the Nimbus processing plant for a number of
throughput rates.
A Works Approval is being prepared for refurbishment to
an initial 300ktpa rate, which is considered the internal milling
requirement for any mechanised development at Comet Vale.
Discussions have
been held with parties interested in development of Nimbus as a toll
milling facility, to treat supplementary sources of feed should production
resume from the existing shaft at Comet Vale.
Connection to the
high‐voltage Western Power grid is expected to be completed in the
March Quarter 2011.
GR Engineering has commenced detailed design work on
parts of the processing plant for refurbishment.
Removal of the ball mill
for inspection was completed last week (picture below).
For the full announcement please click here.
http://esp.gewru.com/download/files/12414/1242889/150910%20-%20Reed_s%20Gold%20Strategy%20and%20Project%20Update.pdf
For more information please contact:
Reed Resources
Chris Reed
Managing Director
T: 08 9322 1182
Media
David Tasker/ Karen Oswald
Professional Public Relations
T: 9388 0944/ 0423 602 353
E:
About Reed Resources
Reed Resources Ltd is a diversified mining and exploration Company based in
Western Australia.
It has modest gold production and is expanding and
diversifying its production base.
Reed Resources has five main projects
(all in Western Australia) including;
* Mount Marion -- High‐grade Lithium project located about 40km south
of Kalgoorlie in JV with Mineral Resources Ltd.
* Comet Vale -- High‐grade underground gold mine.
* Barrambie -- Definitive Feasibility Study completed on a Ferrovanadium
operation to produce 6300t of contained vanadium per annum.
Currently in
approvals process.
* Mount Finnerty -- Iron ore JV with Cliffs Natural Resources & Nickel
Farm‐in with Barranco Resources NL.
* Bell Rock Range -- Nickel‐Copper‐PGM Farm‐out to Anglo
American Exploration.
Website: www.reedresources.com
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