Volt Resources is preparing a JORC-2012 update of the mineral resource estimate for the Luiri Hill Gold Project in south-central Zambia. This will be released in the near-future and coincides with ongoing due diligence for the proposed acquisition of the project along with other activities.
A technical site visit completed as part of the due diligence program confirmed the existence of various large stockpiles, pads and dumps. The project area has good existing power and water infrastructure.
The proposed acquisition of the Luiri Hill project 120km WNW of the Zambian capital of Lusaka, continues Volt’s progression in establishing a new gold business whilst continuing with the development of its Bunyu Graphite Project in Tanzania.
Together with the proposed acquisition of the Guinea gold projects in Guinea, announced in mid-May, the acquisition of the Luiri Hill Gold Project will provide Volt with a combination of highly prospective grass roots exploration in Guinea together with an 85% interest in an advanced gold project in Zambia that has near-term development potential.
The creation of a new gold business provides Volt shareholders with the opportunity to participate in the potential value accretion from gold exploration and development activities, particularly through leveraging the company’s existing extensive networks in Africa.
Luiri Hill is an advanced gold project with considerable drilling and studies already undertaken. The Matala and Dunrobin deposits, which collectively form the project, have the potential to be developed into a medium-scale gold mine in the near-term.
The project was previously majority owned by Luiri Gold Limited, a company that was listed on ASX until 2014, when it was sold to a South African company.
It comprises one large-scale exploration licence and a mineral processing licence with a total area of 31.38sqkm within the Matala Dome mineralised structure. Access to the project area is by a bitumen sealed road, of approximately 120km from Lusaka.
The company has engaged geological and mining consultants, Optiro Pty Ltd, to prepare a resource estimate in accordance with the 2012 edition of the JORC Code.
Most of the gold mineralisation is near-surface and therefore suitable for open cut mining. Volt considers there is an opportunity, with the current and forecast gold price, to reduce the economic cut-off grade and potentially increase the gold ounces available for extraction from what has previously been used to report the historic mineral resources.
More than US$20 million has been invested in the project to date with extensive RC and diamond drilling programs, mineral resource reports, metallurgical test-work programs and studies, and feasibility studies.
In addition to the Dunrobin and Matala deposits, a further 24 gold prospects have been identified within the area of the LEL as being targets for further exploration work.
Based on historical exploration activity including soil geochemistry, rock chip/trench sampling, RC drilling and the associated reports, targets within the LEL include Eclipse, Matala West, Tanduma, Chosa, Shadreck, Shadreck South and Jack & Rode.
Previous resource modelling has also identified the potential for the Matala deposit to extend deeper underground below the currently identified historic mineral resources.