Fully permitted underground mine on high-grade gold deposit.
- The K2 gold deposit is located in the north-eastern part of the tenement block which comprises the Plutonic Dome Project, approximately 180km south of Mount Newman and 30km north of Sandfire’s Degrussa copper gold mine.
- Dampier and Vango are in a Joint Venture to develop the K2 Mine.
- Pursuant to the binding terms sheet executed on 12th May 2017, Dampier has the right to earn a 50% Joint Venture Interest for the expenditure of $3M on the project which is located on M52/183. Currently Dampier has secured a 4.1% Joint Venture Interest in the project.
- Under the binding terms sheet, Dampier is the nominated exploration manager.
- K2 was previously mined by Resolute Mining in 1997 by open cut (0.96mt @ 4 g/t, 124koz), and a 1.4km decline was established in a box cut which accessed the ore blocks.
- Resolute abandoned the mine due to weak gold prices at the time.
- The K2 “UG” Resources: Indicated 0.20Mt @ 8.9 g/t Au (57Koz) & Inferred 0.22Mt @ 6.7 g/t Au (47Koz) for total Indicated & Inferred Resources of 0.42Mt @ 7.7g/t Au (103Koz)*
- At current gold prices, the development of K2 is commercially viable and robust, subject to further definition of reserves, geotechnical studies and metallurgical studies.
- Drilling in progress testing depth extensions of the high-grade resources and infilling areas of Inferred Resources in the current mining schedule. Additional resources and reserves are expected to be delineated in these drilling programs, which will assist in the financial robustness of the project.
- Processing options are under consideration which include toll treatment at nearby facilities or installation of a stand alone processing plant.
- A major commercial feature of the mine is that it can be brought into production for a modest CAPEX of circa A$6M.
*This information was prepared and first disclosed under the 2004 JORC Code on 1st October 2014. It has not been updated to comply with the 2012 JORC Code on the basis that the information has not materially changed since it was last reported. Appendix 1 contains the full tabulation of Mineral Resources as previously disclosed 1st October 2014. Underground (UG) resources are reported above a 3.0 g/t Au cut- off. Due to rounding, tonnages and grades may not equate to exact contained ounces; 100% equity basis.
^The Company confirms that all the material assumptions underpinning the production target, and the forecast financial information derived from the production target, continue to apply and have not materially changed since the disclosure provided in ASX announcement of 14 February 2017 regarding the upgraded DFS on the K2 gold deposit. The original DFS was released 1 July 2014.
K2 Pit – to be dewatered
K2 Decline Box-cut
Plutonic Dome Tenement Package, including K2 (noted)
K2 – INDICATIVE MINE DEVELOPMENT AND PRODUCTION PLAN
K2 Plan View
K2 Long Section Showing Decline and Mineralised Zones