Pilbara Gold (PGL.AX) (formerly known as Kairos Minerals (KAI.AX)) has released an updated resource calculation on its Mt York gold project in Western Australia. The updated resource incorporates assay results from an additional 27,000 meters of drilling, which added about 700,000 ounces to the global resource. According to the company, this represents a discovery cost of just A$13.40 per ounce (less than US$10/oz).
It’s also interesting to see that about 2/3rd of the total resource is now in the indicated resource category, and the company aims to convert the entire inferred resource into the indicated category. A 50,000 meter drill program will be completed this year which will be very helpful to tighten up the resource ahead of a pre-feasibility and feasibility study on the project.
The resource is confined in one large pit shell with a strike length of 4,200 meters, reaching depths of up to 350 meters (with the resource remaining open at depth). It will be interesting to see how the strip ratio evolves as the company drills out the open pit. In a 2024 scoping study, the strip ratio was estimated at 5.7 over the life of mine.
Disclosure: The author has no position in Pilbara Gold. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
