Can Shallow Gold Offset Costs and Accelerate Tungsten Mining at Mt Mulgine?
Tungsten Mining NL’s review of historic drilling at Mt Mulgine confirms significant shallow gold mineralisation, reinforcing its integrated gold-tungsten development approach. The findings highlight near-surface gold potential to offset pre-strip costs and accelerate tungsten extraction.
- Historic drilling confirms shallow oxide gold within Mulgine Trench tungsten pit shell
- Four key targets identified – Mulgine Trench, Bobby McGee, Highland Chief, Black Dog
- Near-surface gold could offset pre-strip costs and improve project economics
- Plans underway for infill drilling and integrated scoping study
- Extensive historic drilling data reviewed from multiple past operators
Historic Drilling Review
Tungsten Mining NL (ASX – TGN) has released a comprehensive review of historic drilling data at its Mt Mulgine Project, focusing on the Mulgine Trench deposit. The review confirms the presence of significant shallow oxide gold mineralisation within the overburden of the planned tungsten open pit shell. This discovery supports the company’s integrated strategy to develop both gold and tungsten resources concurrently.
The Mulgine Trench deposit has a long exploration history dating back to the 1960s, with over 1,100 reverse circulation and diamond drill holes completed by various companies. Tungsten Mining’s analysis identified four main targets – the primary Mulgine Trench oxide gold target and three historical pits, Bobby McGee, Highland Chief, and Black Dog, all showing promising gold intersections.
Integrated Gold-Tungsten Development Strategy
The company’s chairman, Gary Lyons, emphasised the strategic value of near-surface gold mineralisation. By targeting shallow oxide gold, Tungsten Mining aims to offset the pre-strip costs typically associated with open pit mining, thereby improving the overall project economics. This approach could also accelerate access to the primary tungsten ore body beneath.
Key historic gold intersections include 10 metres at 4.19 g/t gold from 8 metres depth at Mulgine Trench, 11 metres at 9.97 g/t at Bobby McGee, 15 metres at 4.45 g/t at Highland Chief, and 7 metres at 7.80 g/t at Black Dog. These results highlight the potential for economically viable gold extraction in the oxide zone.
Geological Context and Mineralisation
The mineralisation is hosted within altered mafic, ultramafic, and greisen units, with gold enriched in supergene zones near surface. The deposits exhibit both horizontal supergene blankets and structurally controlled dipping zones, suggesting multiple controls on gold distribution. The tungsten resource beneath remains substantial, with a probable reserve of 135 million tonnes at 0.10% tungsten trioxide.
Historic mining at Bobby McGee and Black Dog pits produced significant oxide gold, with Minjar Gold Pty Ltd reporting production figures of over 100,000 tonnes at grades exceeding 1 g/t gold. However, these historical figures have yet to be independently verified by Tungsten Mining.
Next Steps and Future Work
Tungsten Mining plans to conduct infill drilling to better define the extent and continuity of the oxide gold mineralisation. This will support a Mineral Resource estimate for the oxide gold component. Additionally, the company intends to undertake a comprehensive integrated scoping study to evaluate the feasibility of a near-term oxide gold start-up project alongside the broader tungsten development.
The review also underscores the importance of integrating gold and tungsten development pathways, especially given recent record prices for both commodities. This dual-commodity focus could position Tungsten Mining favorably within the global tungsten market while unlocking early value from gold.
Bottom Line?
Tungsten Mining’s historic drilling review sets the stage for a potentially transformative integrated gold-tungsten project at Mt Mulgine.
Questions in the middle?
- How will upcoming infill drilling refine the gold resource and impact project economics?
- What are the timelines and expected outcomes of the integrated scoping study?
- How will Tungsten Mining address risks related to historic data quality and mineralisation continuity?
