TNM Drill Down: Rupert Resources' Ikkari project in Finland tops gold assays
Our TNM Drill Down features highlights of the top gold assays of the past week. Drill holes are ranked by gold grade x width, as identified by our sister company Mining Intelligence.
TNM Drill Down Mar. 17-24, 2023
Results from three corners of the globe led the week of Mar. 19. Rupert Resources (TSX: RUP) says new assays may expand the Ikkari gold project in northern Finland. Kaiser Reef (ASX:KAU) plans to expand the A1 mine in Australia dating from 1861. And Torex Gold (TSX: TXG) is drilling at its EPO gold deposit in Mexico.
Rupert drill hole 122206 cut 141 metres grading 3.6 grams gold per tonne from 322 metres depth for a grade x width of 508 in the central portion of the Ikkari deposit.
It's in Lapland, about 900 km north of Helsinki, where a potential open-pit mine could produce 200,000 oz. of gold a year, according to a November preliminary economic assessment (PEA).
"The intercept extends to 100 metres below the open pit considered by the PEA, confirming the continuity of high-grade mineralization," Rupert said Mar. 21.
"Initial results confirm the exceptional continuity of the Ikkari resource and the potential for resource expansions in the west and at depth," Rupert CEO James Withall said in a release.
The company is working on a prefeasibility study for Ikkari and intends to have all its permits by the end of 2025, Withall said in a presentation in March.
Canaccord Genuity mining analyst Michael Fairbairn said in a note on Mar. 21 that the high-grade results increase the potential for incremental growth in the next resource update.
"The ongoing infill and expansion drill programs will help de-risk and optimize the deposit's economics, which may see the PEA pit shell pushed down to capture more ounces in the open pit," Fairbairn said.
The latest resource estimate filed in January shows Ikkari holds 46.4 million indicated tonnes grading 2.5 grams gold per tonne for 3.7 million oz. contained metal. The first resource, delivered in 2021, was 49 million inferred tonnes grading 2.5 grams gold for 4 million oz. gold.
Ikkari could be built for US$405 million to operate as an open-pit mine for 11 years, moving underground in the 10th year for 24 years total, the PEA showed. Sustaining capital costs would be US$395 million. After-tax net present value would be US$1.6 billion with a 5% discount to produce an internal rate of return of 46% and payback after two years, assuming a gold price of US$1,650 per ounce.
Kaiser's A1
Second this week, Kaiser drill hole A1UDH-522 cut 0.3 metre grading 2,005.7 grams gold per tonne from 66.7 metres depth for a grade x width of 501 at the underground A1 mine. The operation about 150 km northeast of Melbourne produced 620,000 oz. gold from 1861 until 1992.
Kaiser mines the site targeting ore with more than 10 grams gold per tonne. It wants to expand into mechanized mining after it increases resources and reserves.
The assay is from 1,254 metres of drilling that has extended high-grade mineralization, in particular northerly extensions to Jupiter Reef and beyond the historic mining of Dukes Reef on the 22 Level, Kaiser said in a release on Mar. 21.
"The drill holes from A1 continued to target both near-term mining and new deeper medium-term discoveries," Kaiser said. Drill holes A1UDH-522 and -523 "show there is potential to go further north than the old workings. This creates a small but potentially rich ore block," the company said.
Kaiser bought the mine in 2021 as part of Centennial Mining. It also included the Maldon goldfield under care and maintenance and the Maldon processing plant that treats A1 ore.
Torex's EPO
Third this week, Torex drill hole ML22-924D at the EPO deposit in Guerrero, Mexico cut 4.3 metres grading 99.5 grams gold per tonne from 664.1 metres depth for a grade x width of 426.
Drilling at EPO, which lies north of the Media Luna deposit near the Guajes Tunnel and south of the Balsas River on the company's Morelos Complex 180 km southwest of Mexico City, was focused on upgrading inferred resources to the indicated category, the company said Mar. 23.
"Drilling EPO, with a view to advancing to the mine design stage, is a strategic priority given the potential for EPO to play a key role in supporting our efforts to fill the mill and maintain consistent gold equivalent production beyond 2027," Jody Kuzenko, president and CEO, said in the release.
"These drill results continue to demonstrate the underlying resource potential of the Morelos property and reinforce our positive outlook on our ability to complement future production from Media Luna."
Toronto-based Torex plans to start commercial production at Media Luna late next year. Media Luna's annual output over an 11.75-year mine life is expected to be 280,000 oz. of gold, 34.8 million lb. of copper and 1.3 million oz. of silver. Torex is estimating its total gold production this year at 470,000 ounces.