A recent drill program by Zamia Gold Mines (ASX: ZGM) has progressed into a maiden resource estimate for the Anthony Molybdenum Project in Queensland of 81 million tonnes at 0.043% (430 ppm) molybdenum at a cut-off grade of 0.02% in primary sulphide zone.
The resource estimate for the main sulphide zone, near-surface oxide zone and the transition between the two zones was undertaken by independent resource consultant, Hellman & Schofield Pty Ltd.
From drilling to date, Anthony contains a high grade sulphide zone of 13.5 million tonnes at almost 750 ppm Mo within a large molybdenum deposit. The high grade zone lies close to surface and would most likely provide the focus for initial mining in any future operation.
Submitted standards suggest the Mo grade may be understated by 10-15%.
The resource remains open laterally and remains open at depth. Of the 31 holes drilled to date, 10 holes have been drilled to a maximum vertical depth of only 130m and 18 holes to a maximum depth of 280m.
Zamia's immediate objectives will be to expand the inital resource and to:
- Establish a more comprehensive geological model;
- Metallurgical testing of oxide and sulphide material;
- Design of a drilling program to expand the resource. H&S has recommended a priority 2000m drilling program;
- Undertake additional quality control tests to assess validity of standards used and to move a portion of
the resource to the Indicated category and;
- Identification of significant geophysical and geochemical anomalies for the wider area around Anthony
Disclosure: The author holds no positions in the company