Bryah Resources (ASX:BYH) Secures Mining Lease For Tumblegum South
Bryah Resources (BYH) can now begin mining activities at the Tumblegum South prospect after being granted a mining lease
The mining lease, currently owned by ASX-lister Australian Vanadium, is part of the Gabanintha Project in WA
Tumblegum South has an existing inferred mineral resource of 600,000 tonnes at 2.2g/t gold for 42,500 ounces – however, Bryah is looking to extend this with an upcoming drilling program
Bryah is also negotiating with a gold processing plant owner about utilising the facility to process ore from the project
Additionally, former Fortescue Metals geologist, Greg Almond, has been appointed to drive Tumblegum South into production
Company shares are up 3.33 per cent, last trading for 6.2 cents
Bryah Resources (BYH) has been granted a mining lease over the Tumblegum South prospect which is part of the Gabanintha Project in Western Australia.
The lease is currently held by fellow ASX-lister, Australian Vanadium (AVL) and covers 70.9 hectares.
The company applied for the mining lease only eight months ago which is a significant milestone in its pathway to near-term gold production. The mining lease allows Bryah to begin mining operations at the prospect.
“We have been successful in progressing the mining lease application and to have it granted in less than 8 months is a credit to all involved and gives us a great chance to capitalise on the robust gold price,” Managing Director Neil Marston said.
Tumblegum South has an inferred mineral resource of 600,000 tonnes at 2.2g/t gold for 42,500 ounces using a cut-off grade of 0.3g/t gold.
This mineral resource estimate was completed in January this year and is based on 49 reverse circulation (RC) holes for 5640 metres.
“We are well advanced in negotiations with a gold processing plant owner about collaborating on the development of the resource with our joint goal being to be fully permitted to start mining and processing gold sometime in 2021,” Neil added.
The gold processing facility will have the capacity to process ore that comes from potential mining operations at the Tumblegum South prospect.
Bryah has also selected a diamond drilling contractor to conduct 200 metres of drilling later this month. Drilling will collect core samples to verify the resource model and interpretation of mineralisation zones, provide samples for metallurgical test work and provide gold grades to compare to nearby RC drill holes.
Additionally, Bryah has appointed Greg Almond to help lead the project into production as soon as next year.
Most recently, Greg was employed as a Principal Geologist in Business Development for Fortescue Metals.
The company plans to conduct an RC. drilling program next year to test the potential to expand the resource.
Company shares are up 3.33 per cent, last trading for 6.2 cents at 3:00 pm AEDT.
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