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Millennium Minerals: Gold reserves jump 31% to 741,000 ounces at Nullagine

Millennium Minerals (ASX: MOY) once again has delivered to the market an outstanding result from the Nullagine Gold Project in Western Australia, with the company boosting gold reserves by 174,000 ounces, or 31% to 741,000 ounces.

The reserve breakdown is 16.38 million tonnes at 1.4 grams per tonne (g/t) gold for 741,000 ounces, using a cut-off grade of 0.5g/t gold.

Where the news gets even more interesting for Millennium is that the new ore reserve will be used to prepare an updated mining plan in the coming weeks.

The impact on the global resource is that it now stands at 34.68 million tonnes at 1.19g/t gold for 1.33 million ounces.

Brian Rear, managing director of Millennium, told Proactive Investors today that the company is targeting the million ounce gold reserve milestone in 2013. Millennium will also look to forward sell some ounces in the New Year as part of a de-risking strategy.

"Golden Eagle will also be a major exploration focus during 2012".

The significance of Golden Eagle deposit can not be underestimated, as the deposit hosts around 70% of the Nullagine resource, with Millennium earlier in the year signing a strategic joint venture which increased the company's tenement footprint in the area.

If exploration confirms an extension to this mineralised corridor within the new tenements, then Millennium has the potential to significantly increase the company's gold inventory.
The joint venture with the Creasy Group covers the Mosquito Creek Formation, with consideration for the agreement being just over 8 million shares for a 70% interest, with Millennium sole funding all required expenditure.

Another plus for Golden Eagle is that permitting and design work for a 1.5 million tonne per annum Carbon In Leach processing facility and associated infrastructure has been completed.

Millennium eyes additional gold inventory increases

Today's upgraded comes from six of Millennium's deposits, including Golden Eagle, Shearers, Otways, All Nations, Bartons and Little Wonder - which were drilled during 2011.

Rear added, “We are delighted to be able to deliver such a substantial increase in Ore Reserves at our project in the run up to the start of gold production next year.

“Our construction program is now well advanced with engineering, earth works, civils, tank refurbishment and village construction on schedule and on budget. We are on track to commence commercial operations by the fourth quarter of 2012.

“We are confident in our ability to further increase the Mineral Resource inventory at all of the deposits that make up the project and we are considering a very substantial drilling program in 2012.”

Resource estimate breakdown - all with 0.5g/t cut-off

- Golden Eagle contains 22.27 million tonnes at 1.16g/t gold for 829,000 ounces.

- Bartons contains 3.71 million tonnes at 1.2g/t gold for 141,000 ounces.

- Shearers contains 2.33 million tonnes at 1.1g/t gold for 81,000 ounces.

- Otways contains 2.74 million tonnes at 0.86g/t gold for 75,000 ounces.

- All Nations contains 1.93 million tonnes at 1.1g/t gold for 66,000 ounces.

- Little Wonder contains 0.56 million tonnes at 1.2g/t gold for 22,100 ounces.