Materials

Greenstone boosts WA Coolgardie resource to over 330,000 ounces of gold

Tue 20 Sep 22, 11:56am (AEST)
A collection of gold nuggets against a black background with one specimen in the foreground
Source: iStock

Key Points

  • Greenstone Resources are up 4% heading into second hour of trade
  • Resource increase growth across two projects, both in Coolgardie: the Burbanks and Phillips Find projects respectively
  • Greenstone says this initial upgrade is interim in nature, as open mineralisation suggests potential for larger increases down the line

Greenstone Resources’ (ASX:GSR) share price has climbed 4.4% to 7.1c as the company boosts its total gold resource across two projects in WA to a collective 330,000 ounces of gold. 

The increase represents growth in the resource size of 128% and is broken down as follows. Note g/t reflects grams of gold per tonne of ore.

  • Burbanks: 3.43m tonnes of ore at 2.5g/t for 277,547oz 

  • Phillips FInd: 0.73m tonnes of ore at 2.3g/t for 54,567oz 

Both the Burbanks and the Phillips Find gold projects are located in Coolgardie, WA. 

Further drilling underway 

Worth noting is that Greenstone calls this resource upgrade an ‘interim’ publication, given its high confidence that mineralisation remains open at both projects and a further resource upgrade is likely on the horizon. 

Once the company carries out step-out drilling to test where exactly gold stops being found, geotechs will be able to crunch the numbers and come back with a figure. 

To that end, the company has already fired up the rigs again at both projects. 

Burbanks, the company notes, includes most of its resource calculations in the first 200m of depth on site, despite the fact previous drills have hit gold at depths over 230m and towards 400m. 

Rapid scale up feasible 

“We have the conviction to rapidly scale up exploration at Burbanks over the coming months, ahead of future resource and development updates,” Greenstone Resources CEO Chris Hansen said. 

“Burbanks is located in the epicentre of the Australian gold industry, surrounded by a network of existing infrastructure, including processing plants.” 

“Outside of Burbanks, the team is growing excited about Phillips Find, not only for high-grade resource additions, but also for the wider potential of new greenfield discoveries.” 

A quick look

Greenstone Resources has a market cap of $74.7m; year to date returns are up 173%. 

The company finished the June quarter with $6.05m in cash, it spent $0.55m over the period. 

Greenstone also spent $1.75m in investing activities over the period. 

A look at Greenstone's one year charts
A look at Greenstone's one year charts

 

Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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