Welcome to GME Resources Limited - an emerging Australian nickel company
Highlights for June 2016 Quarter
- Devon Mine current mining phase nearing completion.
- Repayment of Standby Finance Facility – GME now debt free.
- Review of other gold assets underway – see post quarter event.
- $1.5 million Cash in the bank at the end of the quarter after paying back the Standby Funding Facility.
- Post the end of the Quarter, GME has entered into an agreement with Zeta Resources Ltd (Zeta, ASX:ZER) on the Murrin Murrin Project located within the highly prospective North-Eastern Goldfields of Western Australia.
- Murrin Murrin contains a JORC 2012 (547Kt @ 3.12 g/t Au for 54,875 ounces) indicated gold resource. (Refer - Zeta ASX announcement 22 January 2014)
GME and its subsidiary Golden Cliffs NL own a number of prospective gold projects in the Leonora–Laverton region which have potential to provide near term cash flow.
After completing a Trial pit at the company's 100% owned Devon Gold Mine, expansion of the mine design was approved in the March 2016 quarter, with the first batch or ore processed 11th April.
Steady progress has been made over the June 2016 quarter. To date, approximately 75% of the total volume (450,000 bank cubic metres - inclusive of waste & ore) has now been mined. Four batches of ore totalling 28,100 wet tonnes (42% of total ore) have been processed through the Saracen’s Carosue Dam processing facility.
Sale of gold ore from Batches 1 through 4 have been finalised. The gold price applicable to respective ore sales is determined by the monthly average price as set by the DMP mineral royalties division. The average gold price for the months of April and May were AUD$1620.46 and AUD$1721.36 respectively. Funds from these sales have been received and are included in the financial results reported for the quarter and reflect the positive influence that the Devon mining operation is having on the Company.
By the end of the June quarter significant waste material had been removed from the western wall of the pit down to the main pit floor currently at 23.5 metres below surface (i.e. 374 mRL). For the remainder of the campaign at Devon the strip ratio has reduced significantly allowing access to the remaining higher grade ore and the further development of the pit to its maximum depth of 45 metres.
At the end of June approximately 55,000 BCM’s (roughly 148,570 tonnes) in total remain to be mined from the pit and includes a forecasted 25,000 wet tonnes of high grade ore averaging 6.3 g/t.
Mining of the Devon pit is expected to be completed by mid August with all ore planned to be processed by the end of the September Quarter.
At the end of the quarter four batches of ore have been processed at Saracen’s Carosue Dam processing plant. A total of 26,300 dry tonnes have been treated – the final agreed tonnes and grade of the individual batches are listed below: -
- Batch 1 – 5,832 dry tonnes averaging 4.14 g/t April – Gold Sale Price $1621.46
- Batch 2 – 9,633 dry tonnes averaging 3.61 g/t April – Gold Sale Price $1621.46
- Batch 3 – 6,244 dry tonnes – averaging 6.26 g/t May – Gold Sale Price $1721.36
- Batch 4 – 4,579 dry tonnes – averaging 6.43 g/t May – Gold Sale Price $1721.36
Processing recoveries, determined from metallurgical testwork minus a processor’s deduction, for ore batches have been extremely good ranging from 90.1 to 94.2%.
Review of Gold Assets
GME has commenced reviewing the potential of its gold prospects outside of Devon, in particular within the, Abednego, Laverton Downs Project and Hawks Nest areas. In addition to current Project areas GME will also be pursuing other opportunities within the North-eastern Goldfields of WA. Post the end of the quarter, GME has entered into an agreement with Zeta Resources.
GME Resources is a Perth-based nickel exploration company focused on the development of its 100%-owned NiWest Project, located in the Leonora district of Western Australia.
GME has the potential to become a nickel producer with its NiWest Project resource totalling over 100 million tonnes of ore containing over 1 million tonnes of nickel – making it one of the most exciting undeveloped laterite nickel projects in Australia.
Metallurgical test work on the development of the flow sheet for NiWest Nickel Laterite Heap Leach-SX-EW project is currently on hold as an austerity measure. On completion of the Devon Gold Project the Company will be well funded and will undertake a review of all options to progress the flow sheet development for NiWest.