Gympie Eldorado Gold
Gympie Eldorado is located at Gympie, 180 kilometres north of Brisbane,Queensland and is 100% owned by Gympie Gold.
The objective at Gympie is to discover and develop large, high-profit gold orebodies. Exploration of the Gympie Goldfield advanced significantly during 2002-03 as the major Goldfield "ore feeder", the Inglewood Structure, was discovered along strike to the north and south of the current mine area. Gympie Eldorado's actual cost of discovery to date is only $18 per ounce of resource.
Mining operations provide invaluable working knowledge of the mineralisation systems and is an integral part of exploring the multi-million ounce potential of the high-grade Gympie Goldfield.
The Lewis Decline (tunnel access) was connected to the deeper workings of the Monkland Mine ahead of schedule in December 2002. The decline allows a large area of the Gympie Goldfield to be drilled more cost-effectively from multiple locations underground and tunnel access can readily be extended in various directions around the Goldfield. The operation can now be scaled up relatively quickly as and when additional orebodies are delineated as the haulage capacity of the decline is much greater than that of the existing shafts.
GYMPIE ELDORADO EXPLORATION
The Gympie Goldfield is considered to be very prospective for the discovery of orebodies containing more than one million ounces of gold because:
Tenements covering a ten-kilometre by four-kilometre area surrounding the Goldfield are 100%-owned by Gympie Gold. Our tenements have been expanded to the south in order to cover recently recognised potential.
Substantial prospects identified in the Gympie Goldfield range from conceptual targets to actual discoveries which, in total, may host over six million ounces of gold. Most individual prospects are in low confidence categories ("high risk") due to limited drilling but small zones of North Inglewood and Partridge are more advanced and have already been proven up to ore reserves status. Overall, the likelihood of a major discovery is considered to be high and we are reasonably confident of discovering at least two million ounces.
The primary exploration aim is to discover a major new gold ore system analogous to the Inglewood-Stockwork-Gympie Vein orebodies in the current mine area which has yielded 2 million ounces historically.
A total of $5.7 million was spent on exploration in 2002-03, of which approximately two-thirds was spent on grassroots exploration. Limited funds have constrained exploration expenditure since early 2003.
Gympie Veins, the Inglewood Lode and Stockworks are the three types of orebodies mined to date in the Gympie Goldfield. The sustained modern exploration effort at Gympie has provided strong understanding of the rock types and controls on mineralisation summarised as follows:
The areas considered to have highest potential for significant discoveries:
RESOURCES AND RESERVES
At 30 June 2003, Mineral Resources totalled 686,000 ounces and Ore Reserves totalled 161,000 ounces. Key changes over the past year include:
GYMPIE ELDORADO OPERATIONS
Mine development totalled 7,432 metres for 2002-03.
The Lewis Decline accessed some ore that was mined in 2002-03 but, apart from that, near-mine exploration off the decline has been relatively unsuccessful because it was focused on remnant zones in areas extensively mined historically. The Lewis Decline's principal role is to continue to:
A focus of development at the Monkland Mine during the year was development on the Inglewood Lode in the Museum Shoot.
The primary ore source for 2002-03 was Stockwork Block 6A, which was the first Stockwork orebody discovered and developed at Gympie and marked the arrival of modern bulk-mining to the project. The first stoping block had an average width of more then 30 metres, compared with average stoping width of under 3 metres for the 250,000 ounces mined since modern operations commenced in 1995.
Internal grade variability within the Stockwork orebody led to grade mined to date being about 2.8g/t less than the 11.5g/t initially forecast. Reserve modelling techniques have been calibrated accordingly.
Record gold production of 55,368 ounces was achieved for 2002-03 at a cash operating cost of $350 per ounce. This 7% increase in gold production over the previous year was due to increases in ore mined and mill throughput, partially offset by lower mill recovery and head grade.
Increased mill throughput reflects the recent modifications to the grinding, gravity and leach circuits. Throughput for 2002-03 was double the level achieved in 2000-01. There is scope to further increase throughput as mill capacity is now approximately 300,000 tonnes per annum.
View Gympie's Reserve Statement and Production Statistics (140KB) [ pdf ]
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