Aug 04, 2020

Aeris gets cracking on Cracow gold exploration

Aeris gets cracking on Cracow gold exploration

New Cracow gold operations owner Aeris Resources is getting cracking on the exploration front after completing the acquisition on July 1.

Aeris Resources executive chairman Andre Labuschagne said the company’s near-mine exploration work had already commenced with an RC drilling program at the Klondyke and Roses Pride deposits.

Assay results are pending and Aeris aims to progress these to an open-pit Inferred Mineral Resource status by the end of December 2020.

“An underground diamond drill rig is due to arrive on site in mid-August to test a number of near-mine targets including the Kenneth target, which has a similar geological setting to the nearby Kilkenny ore shoot, which is being mined,” he said.

“Importantly, the Cracow geology team are excited about a number of greenfields exploration targets on the tenement package, including Roses Pride Deeps, Ballymore and NW Corridor.

“We intend to start drilling at each of these areas over the course of the year.”

Aeris Resources bought the Cracow gold operations, with a tenement package covering 903sq km, from Evolution Mining for about $125 million.

As the Central Queensland assets changed hands last month, Aeris committed about $13 million over the next two years for exploration to increase the resource base at Cracow and extend the mine life.

Cracow produced 8,138 ounces of gold during the month of July, which was above expectations.

“Cracow has been a well-run operation so this is not about fixing things, it is about driving the asset hard and also ramping-up exploration in line with our stated strategy,” Mr Labuschagne said.

“The next 12 months will be a really exciting time for both Cracow and Aeris.” 

Mr Labuschagne said that FY2021 gold production guidance remained at 70,000 oz to 75,000 oz.