Metallurgical Results Boost Grace Project but Key Tests Still Pending
Paterson Resources has reported promising geochemical test results from its Grace Gold Project, indicating high gold recoveries using conventional cyanide leach methods. These findings support the project's potential for efficient gold extraction and resource upgrading.
- Cyanide leach tests show gold recoveries of 93.4% and 96.7%
- Samples indicate free milling, non-refractory gold mineralisation
- Metallurgical test work conducted on diamond core composite samples
- Company to continue detailed metallurgical studies for scoping study
- Exploring joint venture opportunities to accelerate project development
Geochemical Test Results Signal Strong Gold Recovery
Paterson Resources (ASX: PSL) has announced encouraging geochemical test work results from its Grace Gold Project in Western Australia. The company submitted two representative diamond core composite samples to ALS Chemex for analysis, revealing gold grades of 0.76g/t and 0.91g/t. Subsequent cyanide leach amenability tests returned indicative gold recoveries of 93.4% and 96.7%, respectively, suggesting the gold mineralisation is likely free milling and non-refractory.
Implications for Processing and Project Advancement
These results are significant because they confirm that conventional cyanide leach processing, a well-established and cost-effective method, can be effectively applied to the Grace deposit. Paterson Resources Executive Director Matt Bull highlighted that the company will focus on completing detailed metallurgical test work to define the optimal process flowsheet. This will feed into an upcoming scoping study aimed at upgrading the resource and reserve base to maximise project value.
Technical Details and Sample Integrity
The composite samples were derived from a single diamond drill hole, with intervals carefully selected to represent the deposit’s mineralisation. Assay results from fire assay and cyanide leach tests showed strong correlation, with low residual gold grades in leach residues confirming effective extraction. Additionally, the samples exhibited low sulphur and copper content, which bodes well for straightforward processing and minimal metallurgical complications.
Strategic Outlook and Next Steps
Beyond metallurgical testing, Paterson Resources is actively exploring joint venture opportunities to accelerate the Grace Project’s path to production. The company’s strategic approach reflects a desire to leverage partnerships that can bring operational expertise and capital, potentially shortening timelines and enhancing project economics.
While these initial results are promising, they represent an early stage in the project’s development. Further drilling, infill sampling, and comprehensive metallurgical studies will be essential to confirm continuity of mineralisation and refine processing parameters.
Bottom Line?
Paterson Resources’ strong metallurgical results at Grace set the stage for resource upgrades and potential JV partnerships, but detailed studies remain crucial.
Questions in the middle?
- How will further metallurgical testing refine the processing flowsheet and recovery rates?
- What are the timelines and terms for potential joint ventures to advance the Grace Project?
- Could resource and reserve upgrades materially impact Paterson Resources’ valuation and project economics?
