{kanada_flagge}Thirty-one drill holes in the past year have been sufficient for P2 Gold Inc. (TSXV:PGLD;FRA:4Z9) to grow the mineral resource at its Gabbs copper-gold project in Nevada by half (50%). The new total resource now totals 2.76 million gold-equivalent ounces, split between the indicated resource (40%) and inferred resource (60%) categories.
By comparison, when P2 Gold acquired the Gabbs project from financial investor Waterton last year, the total resource was 1.84 million AuEq ounces in the inferred resource category only. At the time, 1.84 million gold equivalent ounces or 1.26 million ounces of gold and 422.3 million pounds of copper (73.1 million tonnes grading 0.54 g/t gold and 0.26% copper) were measured. Accordingly, 0.92 million ounces AuEq were added by last year’s drilling.
The gold-equivalent, pit-bound mineral resources at Gabbs, according to the new resource estimate (MRE 2022), include an indicated mineral resource of 1.12 million gold-equivalent ounces, or 0.65 million ounces of gold and 266.7 million pounds of copper (43.4 million tonnes grading 0.47 g/t gold and 0.28% copper). The inferred mineral resource is 1.64 million gold equivalent ounces or 0.88 million ounces of gold and 376.1 million pounds of copper (69.9 million tonnes grading 0.39 g/t gold and 0.24% copper). The indicated resource includes an oxide mineral resource of 576,000 gold equivalent ounces or 0.39 million ounces of gold and 127.9 million pounds of copper (20.1 million tonnes grading 0.61 g/t gold and 0.29% copper).
The 2022 MRE is based on four diamond drill holes and 27 reverse circulation drill holes completed by the Company in 2021. In addition, there are 494 drill holes completed by previous operators of the Gabbs Project between 1970 and 2011. The majority of the increase in the 2022 MRE (over the 2021 MRE) occurred in the Sullivan Zone, where the Company drilled 27 holes (four diamond drill holes and 23 reverse circulation holes) in 2021. The Inferred Mineral Resource at the Lucky Strike Zone also increased in the 2022 MRE, while the Inferred Mineral Resource at Car Body and Gold Ledge changed only slightly.
A comparison of the key parameters of the 2022 MRE with the 2021 MRE highlights the robustness of the new resource. Intentionally, cut-off grades were increased for the 2022 MRE. The oxide and sulphide cut-off grades of the MRE 2021 were still 0.24 g/t gold equivalent and 0.30 g/t gold equivalent, respectively. The MRE 2022 was now based on 0.35 g/t gold equivalent and 0.36 g/t gold equivalent, respectively. On the other hand, gold and copper prices of US$1,675 per ounce of gold and US$3.80 per pound of copper were assumed for the 2022 MRE. For the 2021 MRE, US$1,600 per ounce of gold and US$3.00 per pound of copper were used.
Metallurgical testing indicates potential for heap leaching for oxide material
Metallurgical testing is expected to determine the preferred extraction process for Gabbs mineralization. Based on the work completed to date, Kappes, Cassiday & Associates (KCA) proposes to heap leach the oxide material and recover the gold as saleable doré and produce cyanide soluble copper as a saleable copper sulphide concentrate. For the sulfidic material, KCA proposes flotation to recover a saleable copper concentrate, leaching the flotation residue with cyanide to recover additional gold as saleable doré and cyanide-soluble copper as copper sulfide concentrate.
The gold and copper recovery rates used for the 2022 MRE are based on historical metallurgical test work and recently completed metallurgical testing at KCA. For the oxide material, gold and copper recovery rates were assumed to be 76% and 48%, respectively. For the sulphide material: (a) gold recovery from the copper flotation concentrate was assumed to be 72% and gold recovery from the coarse flotation residue was assumed to be 78.0%, for a weighted gold recovery of 94%; and (b) copper recovery was assumed to be 79% from the flotation concentrate and 7.6% from the cyanide soluble copper precipitate, for a weighted recovery of 87%. Metallurgical testing by KCA has not yet been completed.
Conclusion: It would be hard to prove almost 1 million gold equivalent ounces more efficiently and quickly. One season and 31 holes have increased the total resource at Gabbs by half. Metallurgically, too, the project is now better understood. Of particular interest for economics is the suspected heap leach potential of the oxide portion of the resource. One can now look forward to the preliminary economic analysis (PEA).
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