Expanding the Golden Summit Project
Freegold Ventures Ltd. announced on Sept. 10 that the Dolphin-Cleary deposit at its Golden Summit project in Alaska now contains 23.8 million ounces of open-pit mineable gold across all resource categories, with an additional 1.1 million ounces of underground mineable gold. The scale of this deposit is already impressive, but there is growing evidence that the gold mineralization stretches almost a mile to the west.
Resource Breakdown
The new resource update for Dolphin-Cleary includes data from the 2023 drill program at Golden Summit, as well as two recent drill holes. The resources within the deposit are classified into three main groups: open-pit mineable oxide resources, open-pit mineable primary resources, and deeper under-pit resources.
– Oxide Resources: Indicated resource of 59.41 million metric tons averaging 0.49 g/t gold, with inferred resources of 3.25 million metric tons averaging 0.45 g/t gold.
– Primary Resources: Indicated resource of 346.3 million metric tons averaging 1.08 g/t gold, with inferred resources of 308.31 million metric tons averaging 1.04 g/t gold.
– Under-Pit Resources: Indicated resource of 2.87 million metric tons averaging 1.29 g/t gold, with inferred resources of 22.9 million metric tons averaging 1.34 g/t gold.
Increasing Gold Ounces
Compared to the 2023 resource calculation, there has been an 8% rise in the ounces of gold and a 9% increase in the grade of the primary indicated resource. Additionally, there has been a 45% rise in the ounces of gold and a 23% increase in the grade of the primary inferred resource.
Gold Recovery Considerations
While higher gold prices have contributed to the growing resource, more conservative assumptions regarding gold recovery have offset some of these gains. The current resource calculation is based on a three-year trailing average gold price of $1,973/oz, with a recovery assumption of 72%, lower than the 90% recovery rate in the previous estimate.
Metallurgical Testing and Project Development
Recent metallurgical testing has suggested that a significant portion of the mineralization at Dolphin-Cleary is non-refractory, eliminating the need for high-pressure oxidation for gold recovery. Although the recovery rate might be lower without oxidation, the operational and capital cost savings are expected to outweigh this reduction and simplify project development and operations.
Future Exploration and Development
The 2024 drill program by Freegold is aimed at expanding the resource at Golden Summit by exploring two corridors extending west and southwest of the existing Dolphin-Cleary deposit. Additionally, infill drilling will focus on enhancing ore quality and defining a higher-grade starter pit within the deposit as the project moves towards pre-feasibility.
Insightful Additions
Considering the natural oxidation at the site, the potential for higher recoveries from the oxide resource at the top of the deposit should be closely examined. Trade-off studies will be crucial in optimizing overall project economics and balancing improved recovery rates with capital and operating costs as the project advances towards pre-feasibility and feasibility studies.
Overall, the growing resource at Golden Summit showcases significant potential for further expansion and development, positioning Freegold Ventures Ltd. for continued success in the gold mining sector.
