Mining Lease Application and Drilling Signal Key Phase for Sandstone Gold
Venus Metals Corporation has initiated a targeted RC drilling program at its Sandstone Bellchambers Gold Project aiming to upgrade and expand its existing gold resource. The company is also advancing mining lease applications and negotiating potential sales agreements to position the project for future development.
- RC drilling commenced targeting 2000m across 16-18 holes at Bellchambers
- Current JORC resource stands at 30,500 ounces of gold
- Mining lease application submitted to facilitate project advancement
- Negotiations underway with Rox Resources for potential mine gate sale
- Assay results expected next month, followed by resource update and metallurgical testing
Drilling Program Kicks Off at Bellchambers
Venus Metals Corporation Limited has officially commenced a reverse circulation (RC) drilling campaign at its Sandstone (Bellchambers) Gold Project, located approximately 23 kilometres southwest of Sandstone town in Western Australia. This program, comprising roughly 2000 metres of drilling across 16 to 18 holes, is designed to upgrade the existing JORC 2012 gold resource from inferred to indicated and measured categories, thereby enhancing resource confidence and potential project valuation.
The Bellchambers deposit currently holds a resource estimate of 722,000 tonnes at 1.31 grams per tonne gold, equating to 30,500 ounces, with 22,100 ounces classified as indicated and 8,400 ounces as inferred. The drilling will also explore extensions within the tenement area, seeking to expand the resource base beyond the current footprint.
Strategic Moves Towards Development
In parallel with exploration efforts, Venus Metals has lodged an application for a mining lease covering Bellchambers and potential extensions. This step signals the company’s intent to transition the project towards mining and processing phases in the foreseeable future. The lease application aligns with the company’s broader strategy to unlock value from its portfolio of Australian gold and base metal assets.
Additionally, Venus Metals is negotiating a potential mine gate sale agreement with Rox Resources Limited, which holds interests in the nearby Youanmi Gold Project. This agreement, pursued on a best endeavours basis, could provide a commercial pathway for ore sales and project consolidation, enhancing operational synergies in the region.
Encouraging Metallurgical and Exploration Indicators
Previous metallurgical testing via bottle-roll analysis has demonstrated promising gold recovery rates across oxide, transition, and fresh rock samples, ranging from 75% to over 95%. These results underpin the economic potential of the deposit and will be further refined following the current drilling campaign.
Nearby prospects, such as Range View located about one kilometre northeast of Bellchambers, have yielded significant drill intersections historically, including high-grade intervals like 11 metres at 4.69 g/t gold and a standout 1 metre at 38.92 g/t gold. These zones remain a focus for exploration to identify additional resources that could complement Bellchambers.
Looking Ahead
The drilling program is expected to take approximately two weeks, with assay results anticipated in the following month. These results will inform an updated resource estimate and guide further metallurgical testwork, critical steps in advancing the project’s development case. Investors and analysts will be watching closely for these updates, which could materially influence the project’s valuation and Venus Metals’ strategic direction.
Bottom Line?
Venus Metals’ drilling and strategic initiatives at Sandstone set the stage for a pivotal resource upgrade and potential mining advancement.
Questions in the middle?
- Will the upcoming assay results confirm significant resource upgrades at Bellchambers?
- How will the mining lease application progress and impact project timelines?
- What terms will define the potential mine gate sale agreement with Rox Resources?
