Javelin Minerals is set to have its โEurekaโ moment after lodging a mining development and closure proposal for its Eureka gold project, 50 kilometres north of Kalgoorlie and 20 kilometres north of the Paddington mill in Western Australia.
The company plans to begin mining in the June quarter next year under an agreement with mining services group MEGA Resources. MEGA is a gold and base metal mining services company that partners with companies to provide geological, engineering, and mining services.
Drilling at Javelin Minerals Eureka Pit, north of Kalgoorlie in Western Australia.
The mining operation will be fully financed by MEGA up to $25 million, while Javelin will receive 50 per cent of the Eureka profit. The funding also includes an advance payment of $250,000 each month to Javelin from MEGA to smooth cash flow once ore processing starts.
Following a 27 per cent resource upgrade in July, Eurekaโs inventory now stands at 110,687 ounces grading 1.69 grams per tonne (g/t) gold, including an indicated resource of 78,678 ounces running at 1.80g/t gold. The mineralisation remains open along strike for 1.1 kilometres and down dip beneath the pit, leaving plenty of upside potential for growth.
An eighteen-month mining plan includes a cut-back of the existing 100-metre-deep Eureka pit. Previously drilled intersections within the planned cut-back include 26 metres grading 2.16g/t gold and 22 metres running at 1.2g/t gold.
The company says it plans to continue growing the Eureka resource and production profile starting early in the new year. A geotechnical program has kicked off in preparation for mining and to better define nearby high-grade extensions at Eureka North, which has barely been touched.
Historical high-grade intercepts include 4m at an eyebrow-raising 134.52g/t gold from 53m, 3m at an impressive 48.75g/t gold from 129m and another hole that landed 4m at 11g/t gold from 42m.
In February, exploration drilling will then test below the Eureka open pit and at Eureka North. Mineralisation already reaches 170 metres below the current pit floor, while the lightly drilled, high-grade north-plunging extensions continue to impress with intercepts including 5m at 4.01g/t gold and 4m going 6.16g/t.
Discussions are now well advanced with several nearby plant operators for toll-treatment production options, with some mills just 20 kilometres from Eureka.
