SPX acquires one of the highest grade historic open pit gold mines in WA
Spectrum Metals Limited (“SPX” or “the Company) is pleased to announce the acquisition (100%) of the Penny West Gold Project, near Youanmi in Western Australia. This acquisition follows the First Hit Gold Mine acquisition and cements SPX’s high-grade, brown fields gold strategy, focused in Western Australia.
SPX acquires 100% of the Penny West Gold Project from vendors Patina Resources Pty Ltd and Plateaux Resources Pty Ltd.
Penny West was an historic (1991-1992 and 2014) high-grade open pit producer, located 30km south of the Youanmi Gold Mine in Western Australia.
Penny West was one of the highest-grade open pit gold mines in Western Australia, with reported high-grade production between 1991 and 1992 of 121,000 tonnes at 21.8g/t for 85,000 ounces to 82m depth (Holden & Hyland, 2004).
Gold was free milling with metallurgical recoveries of around 95%.
Existing Penny West JORC 2012 indicated and inferred resource estimate of 230,000 tonnes at 5 g/t for 36,000 ounces, below the current open pit.
Hole 16PPP001, drilled in 2016, intersected 16m at 19.9 g/t gold located 40m below the base of the open pit and represents a potential mining target.
Drill intersections from a 2017 drilling program below the pit included 1.5m at 100.5g/t gold and 66.4g/t silver (from 129m) and 1.5m at 14.9g/t gold and 42 g/t silver (from 69.7m).
Paul Adams, Managing Director of Spectrum Metals Limited commented: “We are very pleased to announce our acquisition of the high-grade Penny West Project, which in our view, cements SPX’s new strategic direction. The acquisition of Penny West follows our acquisition of the First Hit Gold Mine, near Menzies, and means we can employ our expertise to both these complimentary assets”.
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