Venus locks in mining lease for WA Sandstone gold | Australian Markets

Venus Metals Corporation has added critical momentum to its Sandstone area ambitions by locking in a granted mining lease over its Bellchambers gold deposit in the Western Australia Goldfields.

The newly secured tenure covers the company’s 30,500-ounce gold useful resource and firmly units the stage for a potential open-pit operation.

Achieving mining lease standing is a essential step in direction of monetising the deposit at a time when gold costs are nipping on the heels of all-time highs of more than $5100 per ounce.

The lease, which spans 415 hectares, contains the broader Range View space the place a latest drilling program unearthed some compelling numbers.

Standout shallow reverse circulation hits from the Bellchambers deposit embody 29 metres at 1.55 grams per tonne (g/t) gold from 11m, 30m at 1.72g/t from 45m and a chunky 19m at 3.74g/t from 11m.

Meanwhile, the company’s close by Range View and Range View South prospects have continued to impress with broad intercepts of 13m at 1.60g/t from 19m, 18m at 1.24g/t from 47m and 9m at 1.12g/t from 17m.

Venus says the outcomes at Bellchambers trace at a broader mineralised system and set the tone for what it hopes will evolve into a cash-generating open pit.

The present mineral useful resource on website totals 722,000 tonnes grading 1.31g/t for 30,500 ounces of gold. Notably, 22,100 ounces sit in the indicated class, offering a stage of confidence because the company pushes the project in direction of manufacturing.

To additional de-risk the development, Venus has accomplished two diamond holes to help geotechnical evaluation and metallurgical take a look at work. Samples at the moment are in the arms of ALS Laboratory Group for metallurgical analysis to fine-tune gold recoveries and optimise the pit design.

With further knowledge in hand, Venus says it expects to ship a revised mineral useful resource estimate at Bellchambers within the subsequent month. Apart from offering a tasty uplift in the scale of the useful resource, the replace may also offer additional beneficial insights into pit optimisation research and mine structure plans. These plans are in the arms of an skilled Kalgoorlie-based mining engineering crew.

The upgraded lease moreover permits Venus to finalise a mining development and closure proposal. The company is fielding contractor quotes to get that box ticked.

Moving on to processing, Venus is in superior discussions on a doable farm gate sale or toll therapy with close by Rox Resources. Rox owns and operates the Youanmi gold project, which hosts 16.2 million tonnes at a grade of 4.4 grams per tonne for 2.3 million ounces of gold. The project, 70km south of Bellchambers, is in the latter levels of a last investment choice on its own development.

A straight ore sale or a processing settlement with Rox would neatly sidestep the need for Venus to construct a standalone plant, thereby front-loading money circulate from the project and negating the large capital prices concerned.

Elsewhere on the company’s Henderson project close to Menzies, early drilling below the historic Hilltop mine has hit paydirt and is shaping up as one other standout project.

A juicy intercept of 4m going 10.3g/t gold, together with a blazing 1m at 25.1g/t, suggests the outdated workings nonetheless have a lot of sting in the tail. Rock chip samples collected close by have turned up grades as high as 77g/t, including more fuel to the fire. A follow-up drilling marketing campaign is already on the drafting board.

Meanwhile, on one other of its leases close to Youanmi, Venus has uncovered what could possibly be a copper monster. A latest ground survey revealed a whopping 5000 Siemens electromagnetic anomaly.

The company is now focusing on the eye-catching bullseye with reverse circulation and diamond drilling. Results are anticipated within weeks. Shallow zinc hits in the identical space are additionally in line for infill drilling, with an up to date useful resource doubtlessly on the horizon.

Adding to Venus’ intensive stock, the company owns 55 million shares in Rox value $17.35 million and a 1 per cent royalty over the Youanmi mine. The royalty was independently valued 12 months in the past at $9.5 million, when gold costs have been 40 per cent decrease.

With so many irons in the fire and a market capitalisation of $21 million – backed by nearly $18.5 million in money and liquid belongings – Venus has constructed a compelling story.

By including a granted mining lease throughout 30,000 ounces of gold, the company seems locked and loaded to maneuver up the development curve and doubtlessly onto the record of WA’s subsequent producers.

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