Western Australia is set to become a larger player in Australia's mining boom following the discovery of high-grade deposits across the state.
Recently, The West has been running stories on exciting new findings in various locations such as Kalgoorlie, Leonora, Mount Magnet, Pilbara Craton and more.
New exploration hotspot
Western Australia has long been a favoured location for resource companies, and recent strikes by various firms have brought even more optimism to the state.
Among those reporting, good news are Lefroy, Novo, Torian Resources and Venus Metals. Each is at a different stage of discovery, but if early reports live up to their promise, expansions and bigger projects are on the horizon.
Gold mining extensions
Lefroy made the headlines earlier in the year with its findings at the Burns gold-copper-silver project. It has since announced further deposits of gold and copper mineralisation. Further testing is being undertaken with results expected in December.
In August this year, REZ announced the first material movement at its Granny Venn Mining Operations where waste removal had exposed the first ore at 425m above sea level. In addition, resource extension drilling intersected 24m @ 3.19 g/t Au.
Torian Resources has also had luck expanding their Mount Stirling Project, with a high-grade discovery around 10km south of their existing deposit. Hopes are high that this project can be added to the area’s list of major gold deposits.
At REZ’s East Menzies deposit, the company undertook a desktop review of their data using historic information provided by previous owners BHP and CRA. The review showed the possibility of nickel occurrences at the site and, in November 2021, REZ reported nickel strikes of up to 1.78% over a one-metre section of the prospect.
Venus Metals has reported several high-grade gold intersections at their operations near Mount Magnet. Follow up drilling is already planned with the hope of expanding on the 1.7-million ounce gold resource.
Close to REZ’s projects, other explorers such as Venus Metals, Torian Resources and Lefroy Exploration have recorded high-grade strikes at their respective projects, providing a positive outlook for all.
Gold anomalies
Lefroy has revealed two new gold anomalies: Bronte and Catalina. A 136-hole drilling program outside Kalgoorlie. After finding anomalous gold mineralisation in multiple holes, Lefroy is planning to expand its research to test for mining capability.
Novo has also announced similar findings from the Pilbara Craton, which they say are similar to the findings of the huge Hemi gold discovery.
Many companies such as Lefroy and Venus Metals have struck gold in areas close to Kalgoorlie and this could open up opportunities for REZ at its 100% owned Granny Venn mine for near-mine exploration opportunities and for the company to expand its resource base.
Western Australia gold production
Australia is currently the world’s second-largest producer of gold, behind only China’s output, and a large part of that is down to projects in Western Australia.
Gold mining in Western Australia dates back to the 1880s, with early miners proving successful for the next few decades. Today, it’s thought that around 60% of the country’s gold resources come from WA – worth more than $11 billion to the economy.
As more deposits are found throughout the state, it’s expected that there will be a bigger impact on local production and the national economy.
About Resources & Energy Group (ASX:REZ)
Barclay Pearce Capital client Resources & Energy Group (ASX:REZ) is a gold explorer, developer and producer, with projects in Western Australia and Queensland. REZ is focused on developing highly prospective and low-risk Australian mining regions.
Resources & Energy was formed in 2005 and has operated as a gold exploration and development company since 2015.
To keep up to date with their news and progress, and for more information about gold investment as a whole, subscribe to the Resources & Energy Group Chairman's List.
