Resources & Energy Group Limited (ASX: REZ or the Company)  advise that a proposal to resume Mining at Granny Venn has been approved by the regulatory authority. Operations are expected to commence in late June 2021, with mobilisation of plant and equipment to commence immediately. The resumption of operations will be the first mining activity to be carried out at Granny Venn since 1998. The mining operations will be directed by BM Mining, who will assume all responsibilities to manage mining operations to exploit the resource.

Highlights

• A Proposal to commence Mining Operations within ML29/189 (Granny Venn) has been technically assessed and approved by the WA Government (DMIRS).
• Operations are expected to commence in late June 2021.
• Additional intervals of extensive gold mineralisation have been received following completion of Grade Control Drilling; Peak Assays include:
  • 21EMRC016 11m @ 5.46gt/au from 23m
  • 21EMRC024 14m @ 2.15gt/ au from 22m
  • 21EMRC026 10m @ 3.45gt/ au from 22m
  • 21EMRC063 15m @ 3.43gt/au from 3m
  • 21EMRC065 16m @ 3.08gt/au from 5m
  • 21EMRC067 9m @3.79gt/au from 17m
• Resource modelling and mine planning studies have identified five areas of interest to exploit previously reported Indicated and Inferred Resource.
• A Toll Milling Agreement to process all production through the Lakewood Mill is in an advanced stage of completion.
• The resumption of operations represents the first significant mining activity to take place in the East Menzies Goldfield since 1998.

Background

The original Granny Venn open cut was developed by Money Mining in association with Paddington Gold in 1997-1998. At that time mining was based on a pit design optimised at a gold price of $454/oz. The Granny Venn Project was a successful mining exercise. The optimised pit recovered 532kt of ore which was processed at the Paddington Gold Mill at an overall head grade of 3.52g/t with 94% recovery of contained metal for approximately 60k oz Au.

In late 2020 Resources and Energy Group completed a survey over the Granny Venn Open Cut void and compiled historical mining records including previous exploration and grade control drilling, mine closure plans and reports, pit survey drawings and resource modelling.

Read the full announcement here.

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