Can Burtville East’s High Gravity Gold Recovery Cut Processing Costs?
Panther Metals reports exceptional gravity recoverable gold results from metallurgical testing at Burtville East, highlighting potential for cost-effective onsite processing and reinforcing the project's strong economic prospects.
- 84% gold recovery from both oxide and fresh ore samples
- Potential for low-cost onsite gravity processing using crushing and wet plant methods
- Updated Mineral Resource Estimate confirms significant high-grade gold resources
- Open mineralisation remains at depth, suggesting further resource expansion
- Scoping study indicates robust project economics with NPV of A$26.6 million and IRR of 44%
Outstanding Metallurgical Results
Panther Metals Limited (ASX – PNT) has announced metallurgical testwork results from its Burtville East Gold Project that demonstrate an impressive 84% gravity recoverable gold (GRG) from both oxide and fresh ore samples. This high recovery rate was achieved through conventional gravity concentration methods, underscoring the potential for a simple, low-cost onsite processing approach.
The testwork involved samples from oxidised quartz/clay and fresh quartz/basalt ore, both delivering consistent results. Such recoveries suggest that Panther Metals could bypass the need for complex and costly processing facilities, instead employing a straightforward crushing and wet plant gravity circuit onsite.
Economic Implications and Project Viability
These metallurgical findings dovetail with the recent scoping study that confirmed the economic viability of a high-grade open pit development at Burtville East. The study projects a net present value (NPV) of A$26.6 million and an internal rate of return (IRR) of 44%, based on a gold price of A$5,500 per ounce. The resource within the pit design includes approximately 112,000 tonnes of ore grading 2.46 grams per tonne gold, equating to nearly 8,900 ounces.
Importantly, the onsite gravity processing potential was not factored into the October scoping study, indicating that future economic assessments could improve further as this processing route is integrated.
Resource Update and Exploration Outlook
Panther Metals also updated its Mineral Resource Estimate (MRE) for Burtville East, reporting a total of around 110,900 ounces of gold at a 0.5g/t cut-off grade. The mineralisation remains open at depth beyond the current 90-meter model limit, suggesting promising opportunities for resource growth through deeper drilling.
The company plans additional metallurgical testing, including optical microscopy and QEMSCAN analysis, to better understand the mineralogy and gold liberation characteristics. Further drilling will aim to delineate the down-plunge extensions of the high-grade veins, potentially expanding the resource base.
Strategic Advantages and Next Steps
Managing Director Daniel Tuffin highlighted the strategic benefits of onsite gravity processing, noting that it reduces costs and enhances operational flexibility. The ability to process ore onsite could streamline development timelines and improve project economics.
Looking ahead, Panther Metals is positioned to leverage these metallurgical insights alongside ongoing exploration to refine its development strategy. The company’s extensive portfolio across Western Australia and the Northern Territory further supports its growth ambitions in the gold sector.
Bottom Line?
Panther Metals’ strong metallurgical results at Burtville East set the stage for a potentially transformative onsite processing strategy, but further testing and drilling will be critical to unlock the project’s full value.
Questions in the middle?
- How will the integration of onsite gravity processing impact the overall project capital and operating costs?
- What are the timelines and expected outcomes for the planned deeper drilling to test mineralisation extensions?
- How might the presence of arsenopyrite and other minerals affect processing and recovery in large-scale operations?
