Maiden resource of 467,000oz contained gold defined at the NW Array prospect
Resource is analogous in both size and grade to the Gil Sourdough deposit that economically supplies the Fort Knox mine
Felix Gold now has a global resource of 831,000oz contained gold across its Fairbanks assets
High priority drill targets identified that could further grow resources
Special Report: Felix Gold has defined a maiden inferred resource of 25Mt grading 0.58g/t gold for 467,000oz of contained gold for the NW Array prospect within its Treasure Creek project in Alaska.
The company is one of the largest claim holders in Alaska’s Fairbanks gold mining district, where historical gold production exceeds some 16Moz, with leases sandwiched between Kinross’ 11.8Moz Fort Knox mine (19km away) and Freegold Ventures’ 19.7Moz Golden Summit project (18km away).
Notably, Fort Knox is known to be seeking additional ore supply.
Felix Gold (ASX:FXG) has to date focused on NW Array thanks to it being an attractive, open-at-surface 2km x 600m oxide gold system.
Oxide gold resources are valued as they are cheaper to process than sulphide ore and typically contribute to ounces earlier in the life of mine when a producer is paying off their construction costs.
Previous drilling at the prospect from 2023 returned thick, shallow results such as 70.1m at 1.6g/t from a down-hole depth of 6.1m, including 7.6m at 6.4g/t from 21.3m.
Metallurgical testing also returned recoveries of up to 94.5% from oxide material and averaging 89% overall while the prospects of a maiden NW Array resource led to strong support for a recent $2.5m placement.
Resources at the Fairbanks assets. Pic: Felix Gold
Maiden NW Array resource just the beginning
The definition of the 25Mt at 0.58g/t gold resource using a 0.25g/t gold cut-off within a US$2000/oz pit shell verifies the presence of a large-scale, oxide, flat lying, near-surface gold system at NW Array.
Gold mineralisation at the prospect begins at surface and is open in multiple directions. It is also associated with gently dipping, near-surface intrusive rock that is amenable to bulk mining methods.
What this is likely to mean for any potential NW Array development is that it should have a very low strip ratio, a shallow pit and free milling gold, which is a recipe for robust economics in any future feasibility studies.
FXG notes that the prospect is analogous in both size and grade to the Gil Sourdough deposit (533,000oz at 0.56g/t gold) that has been economically supplying Fort Knox for two years.
The NW Array resource adds to the existing resource at the historically producing Grant Mine, more than doubling global resources at the company’s Fairbanks assets to 831,000oz of contained gold.
Multiple targets for resource growth have already been identified and the company has been granted an additional claim that both expands the project’s footprint and provides direct road access to NW Array, simplifying logistics for future drilling programs, equipment transport and potential mine development.
“This is a fantastic outcome for Felix Gold, with the resource confirming the presence of a large-scale, near-surface gold system at NW Array,” executive director Joseph Webb said.
“The resource is open in multiple directions and we see strong potential to grow it significantly through ongoing exploration.
“We are excited to be developing this project in the heart of the world-class Fairbanks Gold District and look forward to updating the market on our ongoing progress.”
Next steps
FXG is currently looking to collect high-accuracy drill collar location data and acquiring density data across the extent of the mineralisation.
It also plans to acquire more metallurgical data to characterise any spatial variability as well as the gold recovery of fresh mineralisation.
Doing so will allow the company to consider indicated classification for the NW Array resource where there is good drilling data to support confidence in the geometry and continuity of the mineralisation.
It has also identified high-priority drill targets adjacent to the inferred resource that could upgrade the resource.
This article was developed in collaboration with Felix Gold, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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