Ravensthorpe Gold Project (RGP)

Project Overview

The Ravensthorpe Gold Project (RGP) is centred on the historic Kundip mining centre, located midway between the regional centres of Ravensthorpe and Hopetoun. RGP benefits from excellent infrastructure and is easily accessed by sealed roads with a sealed airstrip located 10km to the South of the Project. Situated at the intersection of the world class Southern Cross greenstone belt and the Albany Fraser Orogen. The project area is located within a high grade historical mining district with historic production of >140koz Au @ 24.4g/t. The tenement package contains resources within five granted Mining Leases. Mining/Heritage Agreements are in place with the local indigenous groups, Wagyl Kaip and Southern Noongar peoples.

PROJECT HIGHLIGHTS:
• Gold production 337koz over 5.5 years (61kozpa average)

• Peak gold production 79kozpa in year 3 and 78kozpa in year 4
• Robust economics, total funding requirement A$85m, AISC A$1,203/oz
• Numerous project life extension and production rate expansion opportunities

Feasibility Study

ACH is conducting a Feasibility Study into the technical and commercial viability of RGP, target completion date is Q220. JORC 2012 resources at RGP currently stand at 621koz Au. The study contemplates an 800ktpa CIP process plant to treat ore mined from open pit and underground at the Kundip mining centre, all located on granted mining leases. Target metal production is an average of 61kozpa Au over 5.5 years peaking at 79kozpa in year 3. Total production is estimated at 337kozpa Au based on resources that are the subject of the Feasibility Study.

Mineable Inventory
RGP – April 2020
Mt Au
g/t
Au
koz
Open Pit 3.64 1.9 227
Underground 0.72 4.7 109
Total 4.36 2.4 336

Mineral Resource

The JORC resources defined at RGP are open at depth and along strike. The table below is a summary of the open cut (OC) and underground (UG) resources reported at Kaolin, Harbour View and Flag. A successful drill program at these prospects/deposits in 2018 will support an upgrade to RGP resources in Q320.

Mineral Resource Estimate (JORC 2012)
RGP – December 2019
Mt Au
g/t
Au
koz
OC (COG 0.5 g/t Au) Indicated 6.41 2.0 408
Inferred 1.19 2.0 77
UG (COG 2.0 g/t Au) Indicated 0.24 6.2 47
Inferred 0.53 5.2 88
Indicated 6.65 2.1 456
Inferred 1.72 3.0 165
Total 8.37 2.3 621

The current resource estimate comprises 2,837 drill holes, with only circa 2% deeper than 200 metres below surface. ACH is confident that ongoing drilling will lead to further extensions of the known resources. Numerous opportunities exist to add to the production profile of RGP with additional results from advanced gold/copper targets including the Ariel, Ard Patrick and Old Gregg prospects.

Permitting

The Project is currently being assessed under Part IV of the EP ACT (WA). The EPA has concluded its Environmental Impact Assessment and has published the assessment findings recommending RGP be approved for implementation subject to various conditions. The EPA’s recommendation received no appeals and the Company anticipates a Ministerial Statement approving the Project’s development will be issued in coming weeks.

Mine Life Extension

Since acquiring the Project, ACH has completed a total of 6,012m of reverse circulation and diamond drilling at the Kaolin, Harbour View and Flag deposits where mineral resources have been estimated. The extremely successful 2018 drill program will support an upgrade to the RGP resources in Q320. ACH is confident that ongoing drilling will lead to further extensions of the known resources.

ACH believes that the Kundip lodes represent VMS feeder zones and therefore significant potential remains at depth below the already defined resources. Many of the known deposits at Kundip also remain open along strike and importantly, given the feeder zone model, the intersection of key high grade lodes, such as Hillsborough with Harbour View and Harbour View with Flag, remain untested and could represent significant additional zones of high value gold/copper.

The Kundip deposits are also open along strike where the Archean host rocks pass beneath the younger Proterozoic cover to east whilst Flag is known to continue into the tonalite to the immediate west of Kundip. It is clear that this host rock change does not limit the potential as shown at the Lone Star prospect, some 1.5km west of Kundip, where first pass RC drilling at depths less than 20 metres below surface returned 3 metres @ 5.7% Cu / 24.7 g/t Ag and 2 metres @ 3.9% Cu and 1.72 g/t Au.

To the immediate north of the Kundip area the Gem Restored prospect returned results of up to 8m @ 18.5g/t Au & 1.3% Cu from early drilling.

Tenure

The Kundip mining area which is subject of the Feasibility Study comprises 5 granted Mining Leases (M74/41, M74/51, M74/53, M74/135, M74/180) and Miscellaneous Licence L74/34 located 20km to the south east of Ravensthorpe and accessed via the Hopetoun-Ravensthorpe Rd. The Kundip tenements overlay a mixture of vacant crown land and crown reserve. Mining Leases granted post Native Title have Mining Agreements in place with the Traditional Owners, the Southern Noongar and Wagyl Kaip peoples.

All tenements and associated mineral deposits within the RGP are subject to WA State Government royalties upon commencement of production. In addition, Royal Gold Inc. (Royal Gold) holds a royalty over certain portions of the Kundip area.

The Project previously received Ministerial Approval in 2005. Due to the Project not being advanced at that time the approval has since lapsed. ACH referred the project to the Office of the Environmental Protection Authority of WA (OEPA) in December 2016, case number CMS 16331.