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Australian Mines doubles gold resources at Mt Martin to 328,000 ounces

Published: 18:28 24 Jun 2010 EDT

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Australian Mines (ASX: AUZ) has reported an increase of approximately 50% in gold resources at the Mt Martin mine, which is located 30 kilometres south-east of the gold mining centre of Kalgoorlie in Western Australia.

As a result of recent drilling at Mt Martin the gold resource has increased to 328,000 ounces. Surface diamond programmes have defined significant new ounces on the East Lode below the 6 level workings and surface RC programmes have contributed additional near surface ounces.

The company said metallurgical tests will be completed before the end of the month and an open pit optimization study will be completed within a week of receiving the metallurgical test results.

Brett Young, chief operating officer, said the 50% resource increase in the gold resource is a result of drilling completed since the company took control of the Mt Martin area in February 2010.

AUZ has successfully completed three exploration drilling campaigns which have "confirmed the near surface potential of the Main Lodes and also discovered significant new underground ore potential on the East Lode."

On completion of the drilling programmes the gold shoots were remodelled by AUZ and an updated resource model was completed by resource specialists.

The company is currently drilling from the pit floor with a diamond rig so as to sample Main Lode shoots which are directly under the pit floor, and also to close in the drill spacing on the East Lode. The result of this drilling is not included in the resource remodelling.

Mt Martin gold mine has produced to date approximately 200,000 ounces of gold from intermittent mining dating back to 1923.

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