80% Increase in Gold Resources at Cyanide Deposit

  • Resource estimate at Cyanide deposit increased by 80 per cent to 672,000t @ 5.5g/t for 117,800oz
  • Underground resources at Tindals Mining Centre increases to 2.04Mt @ 4.9g/t for 324,000oz
  • Cyanide deposit open along strike and at depth – second rig due in July
  • Upgraded Cyanide resource to add another mining source to the rapidly expanding Tindals Mining Centre
  • Focus on track to produce 80,000 ounces for 2010 calendar year
  • Forecast production of 100,000 for 2010/2011 FY

Gold producer Focus Minerals (ASX: FML) is pleased to announce a substantial increase in Indicated and Inferred Resources at the Company’s underground Cyanide Project within the Tindal’s Mining Centre, Coolgardie.

The updated JORC-compliant resource for the Cyanide Project totals 672,000t @ 5.5g/t Au for 117,800 contained ounces (Table 1), comprising:

  • An estimated Indicated Resource of 383,000t @ 5.4g/t for 66,100 contained ounces; and
  • An approximate Inferred Resource of 289,000t @ 5.6g/t for 51,700 contained ounces.

This represents an 80% increase on the previously announced Inferred Resource of an estimated 367,000t @ 5.5g/t for 65,400 contained ounces. Diligent validation of all available data and recent detailed technical work has provided confidence in the data and the Cyanide Resource.

There remains significant upside to the Cyanide resource both along strike and at depth, with a second underground diamond rig arriving in July to commence expanding the Cyanide high-grade resource. The resource upgrade at Cyanide has increased the underground resources at the Tindals Mining Centre by 20% to 2.4Mt @ 4.9g/t for 324,000 contained ounces (Table 2) with work underway to convert the increased Resource at the Cyanide deposit to Reserves.

Focus Chief Executive Officer Campbell Baird said this latest upgrade to the Cyanide resource highlights the massive potential that exists at the Tindals Mining Centre to continue to deliver additional high-grade resources and reserves.

“In the past 12 months, Focus has added 150,000 ounces to reserves and increased the resource base by over 250,000 ounces. The Tindals Mining Centre continues to deliver in spades for Focus. With increasing high-grade production coming from The Mount and our ongoing drilling programmes, Focus is cementing its position as a substantial mid-tier gold producer in Australia with a significant gold inventory and robust profit margins,” said Mr Baird.

Download full announcement – Resource Upgrade at Cyanide Deposit

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