Verity’s Monument Gold Project Faces Critical Economic Assessment Phase

Strategic Move Amid Rising Gold Prices

Verity Resources Limited (ASX: VRL) has taken a decisive step forward in advancing its Monument Gold Project in Western Australia by commencing a pit optimisation study on its Korong and Waihi gold deposits. This initiative follows a notable increase in gold prices since the last Mineral Resource Estimation (MRE) in 2021, positioning the company to potentially enhance the economic viability of these near-surface resources.

The Korong deposit hosts an inferred resource of approximately 3 million tonnes at 1.4 grams per tonne gold, equating to 139,000 ounces, while Waihi contains 0.2 million tonnes at 2.1 grams per tonne for 15,000 ounces. Both deposits remain open in all directions, suggesting further upside potential.

Engaging Expertise for Optimisation

To support this critical phase, Verity has engaged Cube Consulting, a respected mine engineering consultancy, to conduct the pit optimisation study. The study aims to develop economically viable open-pit designs that maximise profitability by reassessing key parameters such as cut-off grades, tonnage and grade distribution, pit size and shape, and operational costs. This reassessment is particularly timely given the gold price surge to over USD 2,800 per ounce, which could materially impact project economics.

Open-pit mining is considered appropriate given the shallow nature of the mineralisation, with the majority of the resource within 200 metres of surface. The study’s outcomes will be pivotal in guiding future exploration, infill drilling, and resource expansion strategies.

Prime Location in a Prolific Gold District

The Monument Gold Project spans approximately 195 square kilometres within the Laverton Gold District, a prolific and well-established mining region in Western Australia. It lies adjacent and along strike to Genesis Minerals Limited’s Mt Morgans Project, which boasts a 3.3 million ounce gold resource. This proximity not only underscores the geological potential of Verity’s tenure but also offers logistical advantages, including access to sealed roads, a gas pipeline, and nearby processing infrastructure, which could reduce capital and operational expenditures.

Importantly, only about 10% of the 20-kilometre strike length of the key banded iron formation (BIF) hosting Korong and Waihi has been drilled to date. Over 60 additional untested targets, including BIF, basalt, and intrusion-hosted gold prospects, remain to be explored, highlighting significant exploration upside within the project area.

Looking Ahead

The pit optimisation study represents a foundational step in unlocking value from the Monument Gold Project. By refining the economic parameters and mine design, Verity Resources aims to position the project for potential development and attract further investment. The study’s findings will also inform the next phases of drilling and resource definition, which could expand the current 154,000-ounce inferred resource base.

As the company navigates this critical juncture, market participants will be watching closely for updates on the optimisation outcomes and subsequent exploration results that could reshape the project’s trajectory.