HIGHLIGHTS
- Second gold pour of 9.66kgs took place on
- Processing continued at GAM processing plant although further mechanical problems were experienced resulting in a 5-day shutdown with processing resuming on
- Mill recoveries were at 91% over the month, although gold production is lower than modelled, resulting in smaller than predicted cash flow.
Update on Activities at the Company's Cloncurry Gold Projects
The second gold pour was achieved on
Processing at the
Recovered grades during the month were lower than expected based on the grade estimates from the geological resource block model and in-pit grade control sampling results.
As of the end of
The reasons for the lower grades than predicted from the resource and grade control modelling are currently being assessed, but there appears to have been additional dilution during mining coupled with a greater orebody complexity (understanding that the mineralisation consists of narrow sub-vertical vein gold lodes). Additionally, final mill reconciliations still need to be carried out once decommissioning has been completed.
Update on the
Following meetings held with the
Importantly the Company retained the key strategic areas of interest along the highly prospective Burra /
Accordingly, whilst the total area under tenure has been reduced from 6,561km2 to 3,565km2, the Company's exploration strategy and plans for Burra have not been impacted. It is to be noted that the 3,565km2 is still a significant tenement package in a key-mineral belt, highly prospective for copper and gold ore deposits.
As part of the tenement reduction, the Company's annual expenditure arrangements (AEA) were significantly reduced, a significant benefit to the area's reduction, as the expenditures (both annual and historical rolled over from previous years) were unsustainable covering such a large area. Currently the new revised AEA over the 3,565km2 that covers the period
A new map of the revised tenement holding for Burra is attached (Appendix A*), together with a table showing the tenement changes (Appendix B*). The area reduction does not impact on the exploration strategy of the Company at all, as the relinquished ground predominantly covered the less prospective ground to the west of the main Burra mineral field.
As part of this tenement and activity review with the
Corporate Update
The Company has requested an extension to its voluntary suspension for a further period of three (3) weeks so that the Company may conduct processing the remaining ore at GAM.
Updated mine schedules are currently being worked on with Tombola's mining consultants, and a revised operational plan is expected to be available later this month.
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/14GTK4N5
About
Tombola principal objective is to acquire assets to explore for and develop a large IOGC or porphyry deposit funded by low-risk gold production resources. To that end, Tombola has a license covering 970 sq km prospective for gold/copper in the Mount Bryan-Red Banks-World's End area near Burra in
Contact:
Managing Director
bmiles@tombolagold.com
Investor and Media Relations
info@janemorganmanagement.com.au
+ 61 (0) 405 555 618
Company Secretary
pamela@tombolagold.com
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