Freshwater Project
The Freshwater project is located adjacent to and to the east of the Plutonic Gold Mine located approximately 180km north east of Meekatharra in Western Australia. The project is owned and operated by Barrick Gold of Australia Limited. Grange holds a sliding scale royalty based on grade, tonnage and type of ore milled on all production from the Freshwater leases.
Within the Freshwater tenements several small open pit mines have been developed over the past few years including Salmon, Perch, Trout, Redfin, Bream, Area 4, Dogfish, Catfish, Piranha and Pigeon. Drilling has also been successful in outlining significant underground reserves at Plutonic East. Most of the open pit reserves have now been mined and production from the Plutonic East underground mine is now underway.
Freshwater Project – Location of Mines
Royalty income derived from open pit ore from November 1996 when the royalty was first established, to 30 June 2007 totals $3.0 million. Gold ore treated during this period has been 4.03 million tonnes at an average grade of 2.08 g/t gold for the recovery of 259,065 ounces. The royalty has averaged $11.58 per ounce of gold produced.
Royalty income for underground ore from December 2001 when development of the Plutonic East mine commenced, to 30 June 2007 amounts to $1,227,540. Gold ore treated during this period has been 496,316 tonnes at an average grade of 5.94g/t gold for the recovery of an estimated 87,670 ounces. The royalty has averaged $14.00 per ounce of gold produced.
Royalty income for underground ore from December 2001 when development of the Plutonic East mine commenced, to 30 June 2006 amounts to $1,074,259.
Resources and Reserves
Barrick Gold has advised that as at 31 December 2006 the Freshwater underground Ore Reserves amounted to 160,000 tonnes grading 6.6g/t gold containing 34,200 ounces gold. In addition to these reserves, Freshwater underground Mineral Resources amounted to approximately 2.51 million tonnes grading 5.89 g/t gold containing 474,600 ounces gold.
Ore Reserves and Mineral Resources for the Plutonic East and Area 4 underground project are presented in the table below.
|
FRESHWATER PROJECT PLUTONIC EAST & AREA 4
UNDERGROUND STATEMENT OF ORE RESERVES AND
MINERAL RESOURCES AS AT 31 DECEMBER 2005 |
|||||
|
Location |
Category |
Tonnes |
Grade g/t Au |
Contained Ounces |
Recoverable Ounces |
|
ORE
RESERVES |
|
|
|
|
|
|
Plutonic
East & Area 4
|
Proved |
36,000 |
7.06 |
8,200 |
7,400 |
|
|
Probable |
124,000 |
6.49 |
26,000 |
23,400 |
|
|
|
|
|
|
|
|
Total
Underground Ore Reserves |
|
160,000 |
6.62 |
34,200 |
30,800 |
|
|
|
|
|
|
|
|
MINERAL
RESOURCES |
|
|
|
|
|
|
Plutonic
East & Area 4
|
Indicated |
399,000 |
5.32 |
68,200 |
|
|
|
Inferred |
2,110,000 |
5.99 |
406,400 |
|
|
|
|
|
|
|
|
|
Total
Underground Resources |
|
2,509,000 |
5.89 |
474,600 |
|
Barrick Gold also reported open pit Ore Reserves as at 31 December 2006, of 676,000 tonnes grading 2.4 g/t gold, containing 52,200 ounces of gold. In addition to these reserves, Freshwater open pit Mineral resources amounted to approximately 96,000 tonnes grading 2.15 g/t gold containing 6,600 ounces of gold.
Open pit Ore Reserves and Mineral Resources are presented in the table below. It should be noted that in both tables the mineral resources are exclusive of those resources modified to estimate the ore reserves.
|
FRESHWATER PROJECT OPEN PIT PROJECTS STATEMENT OF MINERAL RESOURCES
AS AT 31 DECEMBER 2006 |
|||||
|
Location |
Category |
Tonnes |
Grade g/t Au |
Contained Ounces |
Recoverable Ounces |
|
ORE
RESERVES |
|
|
|
|
|
|
Trout |
Probable |
676,000 |
2.40 |
52,200 |
47,500 |
|
|
|
|
|
|
|
|
Total Open
Pit Reserves |
|
676,000 |
2.40 |
52,200 |
47,500 |
|
|
|
|
|
|
|
|
MINERAL
RESOURCES |
|
|
|
|
|
|
Trout |
Indicated |
85,000 |
2.18 |
5,950 |
|
|
|
Inferred |
11,000 |
1.92 |
650 |
|
|
|
|
|
|
|
|
|
Total Open
Pit Resources |
|
96,000 |
2.15 |
6,600 |
|
These reserve and resource statements have been prepared by Matthew Fallon, Geology Superintendent for Barrick Gold of Australia Limited, who is a competent person as defined in the JORC Code. Mr Fallon is a full time employee of Barrick Gold of Australia Limited. Barrick Gold of Australia has consented in writing to the information being included in the form and context in which it appears.
Freshwater Project – Plutonic East Portal