Macphersons Resources : Boorara Trial Open Pit Gold Mining

ASX Code: MRP

Contact Details

PO Box 10977

109 Maritana Street

Kalgoorlie WA 6430

T +61 (0) 8 9068 1300

F +61 (0) 8 9068 1310

E info@mrpresources.com.au

ABN 98 139 357 967

Board of Directors

Ashok Parekh

Non-Executive Chairman

Jeff Williams

Managing Director

Peter Rozenauers

Non-Executive Director

ASX Announcement 29 July 2016

• Trial open pit mining is planned to commence at the Boorara Gold Deposit in September 2016. This will enable MacPhersons to better understand the resource model and metallurgical aspects of the orebody. If results are as expected then MacPhersons will consider the transition to full scale open pit mining and treatment via carbon in pulp (CIP).
• The Trial Open Pit up to 20 metres depth is planned to extract 20,000 tonnes of ore grading 1.8 g/t gold and up to 10,000 tonnes of low grade ore grading 0.6g/t Au producing up to 1,200 ounces of gold.
• Shallow depth vertical (
  • 16 metres @ 2.77 g/t from 2 metres (BGC10060)
  • 17 metres @ 2.05 g/t from surface (BGC10073)
  • 20 metres @ 1.89 g/t from surface (BGC10089)
• Initial observations indicate that the grade control drilling has resulted in an increase in the overall grade of the grade control model compared to the existing resource block model.
• Preliminary CIP metallurgical testwork on the Boorara gold deposit has indicated gold recoveries of 93% are achievable.
• The Boorara trial pit project management plan (PMP) was lodged with the WA Department of Mines and Petroleum (DMP) on the 8th of July 2016 approval is expected in late August 2016.
• A toll milling agreement has been executed with FMR Investments Pty Ltd to mill up to a 30,000 tonne trial parcel of ore through their Coolgardie Greenfields Mill.

MacPhersons Resources (ASX: MRP) is pleased to advise that it is planning to commence trial mining at the Boorara gold deposit, subject final DMP approval. The aim of the Boorara trial mining operation is to enable accurate resource, mining and milling reconciliations to be undertaken on the deposit that is part of the current feasibility study. A successful trial mining operation will give the MRP board confidence to advance the Boorara gold deposit into full scale production.

Reverse circulation grade control drilling has been completed on close spaced 4 m x 4 m pattern over the majority of proposed trail pit design, the remainder of the grade control drilling is expected to be completed by the end of July.

Based on drilling to date MRP is confident that approximately 20,000 tonnes of ore grading 1.8 g/t gold (diluted tonnes and grade) and up to 10,000 tonnes of low grade ore grading 0.6 g/t gold (diluted tonnes and grade) will be extracted from within the trial pit design producing up to 1,200 ounces of gold (based on 93% recovery).

Metallurgical testwork on the trial pit grade control samples has indicated a recovery of 97.7%.

The PMP was submitted to the DMP in early July 2016 and approval is expected to take 6 weeks. The PMP contains details on the mining method, trucking route, waste dump and office location. It also outlines the required MRP safety management system. The PMP is the final regulatory approval required before commencement of mining. A small team of experienced open pit mining professionals have been engaged to undertake the trial mining activities; these staff are well known to MRP. Kalgoorlie based mining contractor MLG Oz Pty Ltd has been engaged to undertake the trial mining using a mining fleet consisting of a 90 tonne excavator, 3 x 40 tonne articulated trucks, bulldozer, grader and water cart.

Mining of the trial open pit is expected to take four weeks to complete and the ore will transported to the FMR Investments Pty Ltd Greenfields CIP toll treatment milling facility. The processing of the higher grade ore will take one week; the approximately 10,000 tonne of low grade ore will also be processed to make a batch of approximately 30,000 tonnes.

The trial pit is located within the planned Southern Stockwork heap leach pit design at Boorara. This pit is centred on the dolerite host rock with the gold ore zone outcropping at surface. The interpreted ore envelope consists of close spaced dolerite hosted quartz veinlets and veining. The dominant vein geometry strikes 040° and dips 30° to the northwest.

The proposed Boorara heap leach open pit designs contain a Measured Resource and Indicated Resource to 75 m vertical depth of 3.0-3.5 million tonne grading 1.01 g/t gold producing circa 86,000- 91,000 ounces of gold over three years from a standalone heap leach.

Refer ASX Announcement 29 June 2015. : Ore reserve oxide marginal cut-off at 90% met recovery is 0.374g/t Au. Transitional marginal cut-off at 70% net recovery is 0.457g/t Au. Fresh marginal cut-off at 55% recovery is 0.582g/t Au. Differences in totals occur due to rounding.

Figure 1: Boorara Trial Pit Location in Relation to Proposed Heap Leach Pit Design Outlines.

Figure 2: Boorara Trial Pit RC Grade Control Plan.