Wiluna happy with Happy Jack’s gold bonanza

Among multiple intercepts with abundant coarse gold at Happy Jack were 1.9m at 298.8 grams per tonne, including 0.76m at 773gpt; and 8.67m at 18.44gpt, including 4m at 36.28gpt.

Thick, high-grade intercepts over broad areas were returned at East Lode, such as 14.9m at 8.6gt and 10.2m at 4.42gpt, including 6.95m at 5.06gpt in a single hole.

The drilling is infilling inferred resources in the central and south areas of the Wiluna mining complex as the company prepares for the start of production this quarter.

Wiluna says the multiple high-grade intercepts support potential higher grades in its stage one development, and a number of intercepts outside the resource envelope.

The current resource of 26.9Mt at 4.89gpt has lower grades than the historically reported 7-11gpt, and Wiluna expects that when stoping commences in previously unmined areas its resource grade may climb.

Wiluna said that each 1gpt increase in grade adds an additional 25,000ozpa to production in stage one, increasing to an additional 50,000ozpa in stage two.

The company’s goal is to build from a 2.14 million ounce at 5.26gpt measured and indicated resource to 2.5Moz in order to enhance mine planning and long-term option studies.

Wiluna shares were up 5% to A99c today, valuing it at $150 million.

The stock has traded between 86.5c and $2.30 over the past year.