Excelsior strengthens its claims for underground mine
Excelsior Gold’s case for an underground mine at its Kalgoorlie North project just got stronger.
Shares in the Fremantle-based explorer shot up 7.5 per cent yesterday after the release of drilling results it says confirm a potentially rich discovery outside its existing underground mine design.
Excelsior’s exploration manager Bradley Toms said hits of 7m at 27.2g/t from 92m below the surface proved a long-held theory that mineralisation continued from the high-grade Zoroastrian deposit.
Mr Toms said the latest drilling intersected gold within 30m of the proposed underground mine at Zoroastrian, 45km north of Kalgoorlie-Boulder.
The existing underground reserve at Zoroastrian is 108,500 ounces which the company hopes to expand later this year.
In March, Excelsior put a $76 million price tag on development of Kalgoorlie North which would comprise multiple open pits and the underground Zoroastrian mine in the second year of operations.
