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The goldfields of Vatukoula have created a stir in the overseas share market following the release early this month by owner Vatukoula Gold Mines plc. of an independent updated resource assessment report
VGM is listed on London’s Alternative Investment Market and had spent the last few days basking in investor attention and positive recommendations from stock analysts.
The findings of the assessment, which is available on the company’s website www.vatukoulagoldmines.com indicated VGM’s passion of a “world class” gold deposit.
“This assessment was carried out by AMC Consultants Pty Ltd and represents the first Mineral Reserve and Mineral Resource estimation carried out by the company since readmission (to London’s AIM) in March 2008,” VGM stated when announcing the assessment.
“AMC has undertaken a complete review of the mining operations and a detailed review of Mineral Reserve and Mineral Resource estimates. As a result of using a more conservative methodology, the Mineral Resources are lower than those published in our 2008 admission document. Nonetheless, this updated estimate continues to demonstrate that VGM has a world class gold deposit in terms of size, scale and potential,” said VGM CEO David Paxton.
The findings showed that Vatukoula has a combined Proven and Probable Mineral Reserve estimate of 1.9 million tonnes of ore grading, 10.9 grams of gold per tonne for contained gold of 0.68 million ounces.
This is based on a gold price of US$750 per ounce and projected operating costs of $US107 (F$203) per tonne of ore.
“We believe that the cost per tonne will be further reduced once we have achieved our targeted production levels. The reported Mineral Reserves provide a mine life of approximately seven years at our planned production rates,” said Paxton.
