Bolivian and Australian focussed gold developer Republic Gold (ASX: RAU) has today commenced drilling at its 100% owned Tregoora Gold Project in Far North Queensland.
While many eyes have been on RAU's Amayapampa Gold Project in Boliva given its size, the company's Far North Queensland (FNQ) projects are capable of providing near term cash flow.
Bankable Feasibility Studies have commenced and gold production could commence in FNQ as early as 2010 with planned 35,000 ounces of production per annum.
Drilling will have two objectives at Tregoora in FNQ: to provide samples for an an expanded metallurgical testwork programme and also to upgrade the mineral resources at Tregoora.
There have been some very high grade intercepts in past 2 years at Tregoora and Far North Tregoora of: 24m @ 8.3 g/t 24m @ 4.78 g/t in X-holes on the same drill section.
The Tregoora Project is planned for development in conjunction with the Northcote project but has the potential to outstrip Northcote and become the Company’s main project area. The bulk of the combined resources of 2,847,000 t at 1.7 Au g/t containing 156,000 Au ounces is contained within the Sleeping Giant deposit to broadly open pittable depth Northcote, after a recent upgrade has total resources of 9,420,000 tonnes at 1.7 g Au/t containing 573,000 ounces gold.
A number of studies that form part of the Bankable Feasibility Study at have already been completed, with the Company in discussions with engineering firms to provide the final input required for the completion of a Bankable Feasibility Study.
Republic’s Managing Director John Kelly said the Company is moving ahead with its production plans for Far North Queensland. This year’s drilling at Tregoora "will enable the completion of metallurgical testwork necessary for the Bankable Feasibility Study and if successful will see an initial mineral resource at the high grade Terrace Creek Prospect."
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