Forrestania Resources has announced a maiden inferred mineral resource of 58,700 ounces of gold at its Burracoppin project near Merredin in Western Australia. The small but shallow resource is strategically positioned within close proximity to Ramelius Resources’ 2.8 million tonne per annum Edna May mill, which is currently on care and maintenance.
Low Acquisition Cost
The company reports that it acquired the gold resource, which grades 0.91 grams per tonne (g/t), at an exceptionally low acquisition cost of just $14 per ounce. This comes as Forrestania continues to opportunistically consolidate numerous other junior gold resources throughout the Yilgarn region.
Strategic Location
The Burracoppin project now wraps around Ramelius Resources’ Edna May gold mine and its processing infrastructure, positioning Forrestania to tap into established milling options. This strategic footprint could become a logical next development target for the $650 million-capped company as it pushes towards production across its expanding Southern Cross gold ground.
Westonia Hub and Spoke Strategy
The Burracoppin project forms a core part of Forrestania’s Westonia hub and spoke strategy, where the company aims to consolidate assets in a region rich with gold occurrences and established infrastructure. Located 20 kilometres east of the wheatbelt town of Merredin, the project straddles the Great Eastern Highway, providing excellent access for exploration crews in the mining-friendly region.
Geology and History
The geology at Burracoppin is classic Archean lode-style gold, with mineralisation occurring in narrow, steeply dipping, north-south-striking veins. The area has a long history of high-grade gold production from numerous prospecting pits and shallow shafts dating back to the 1930s, when miners rarely pursued anything less than one-ounce dirt.
Resource Estimation
The new resource was constructed using a database of 155 reverse circulation (RC) holes for almost 11,500 metres, including historical work and more recent drilling by Askari Metals in 2021-22. Historical drilling yielded notable intersections, including a 3-metre hit grading 17.41 g/t gold from 73 metres at the Easter Gift prospect.
Future Plans
With an approved program of work already in hand, Forrestania is planning further drilling to test for extensions to the mineralisation along strike and at depth. A diamond drilling campaign is also planned to provide core for metallurgical test work, which will be crucial in assessing the project’s economic viability.
Forrestania Resources chairman David Geraghty said: “The delivery of this Mineral Resource Estimate at Burracoppin marks an important milestone for the Company. It’s a clear demonstration of our capacity to identify and secure prospective ground, as well as of FRS’s technical ability to independently assess projects that can add material value to our growing gold production and development business. This JORC Resource strengthens our confidence in the potential of Burracoppin and in the other assets we have advanced in the neighbouring regions.”
Company Expansion
The company has expanded rapidly in the past two years, with its namesake Forrestania project 120 kilometres south of Southern Cross, embedded in a highly prospective Southern Cross greenstone belt. It sits immediately adjacent to the historic Bounty gold mine, a former powerhouse that produced over one million ounces of gold during its peak production years. To the north, Forrestania sits along the gold-endowed corridors of Coolgardie and Menzies, further strengthening its geological setting. Its Eastern Goldfields portfolio adds additional exposure to proven, mineral-rich belts, offering a pipeline of well-trodden ground with strong exploration upside.
Processing Facility
The company is currently trucking gold to its recently acquired and soon-to-be-refurbished Lake Johnston processing facility near Forrestania, where it hopes to increase gold production and return the plant to a robust 3.2 million tonnes per annum target. With a maiden resource now on the books at Burracoppin and an attractive acquisition cost, the company could potentially eye further expansion across its Southern Cross footprint. In the near term, however, the focus remains firmly on upcoming drilling to grow and upgrade the resource.
