The alluvial gold production from surface workings, will intermediately generate cash revenue for the company, while further exploring for the potential of open pit bulk mining.
The company expects to refine (pour) its first gold bar within weeks.
Paynes Find Gold is the first company to control practically all of the historic Paynes Find goldfield in one entity,. The company's tenement area covers some 5.5km strike and 2km width for around 940ha of 100% held tenure.
Having recently gained approval from the Department of Mining and Petroleum to commence mining, the company is currently utilising its existing 100% owned alluvial gravity circuit plant. The current expectations are that approximately 9,000 tonnes per month with an average head grade based on historical results of between 0.3 to 0.5 grammes per tonne will be processed. The plant is capable of processing at a rate of 50 tonnes/hour.
A comprehensive Geological Structural Study was completed following outstanding results from a Stage 2 drilling programme in late 2012. Results demonstrated the high-grade nature of shear-related gold-bearing quartz lodes, which were the target of historical mining activities within the gneiss. CSA Global undertook the important work
which has highlighted the favourable setting of the Paynes Find goldfield in a regional scale context of gold occurrences within the Yilgarn. Recent geological and structural reviews have also identified additional gold targets within the company's tenement areas. These reviews identified additional work required to test from medium to large scale gold systems.
The company will now expand field activities to generate further high grade gold targets for testing as part of its Stage 3 drilling programme.
In addition, extensive multi-element geochemical soil sampling will be undertaken by ioGlobal to compliment and extend the 2011 geochemical soil survey. A broad multi-element geochemical soil sampling survey of approximately 800 samples has been
finalised since the 25th of February 2013. The next program is expected to commence this month and will cover newly identified zones and test extensions to known mineralisation indicated by geophysical datasets.
Carl Popal, Chief ExecutiveDirec tor of Paynes Find Gold said, "The Geological Structural Study and geochemical soil sampling represent an important step forward in understanding high-grade gold distribution in the Paynes Find goldfield. Our recent Geological Structural Study gave us more gold targets above the historical gold bearing areas. This is exciting news, as we now can say not only historical areas which is 5% of total area of leases show gold potential but further exploration targets given by CSA in conjunction with ioGlobal provide positive future potential also."
Paynes Find Gold anticipates the geochemical soil sampling survey will be completed in March, with results expected by early April.
Paynes Find Gold Limited
Paynes Find Gold Limited ("PFGL" or the "Company") is a publicly listed gold exploration company (ASX: PNE) registered in Australia and based in Perth exploring for viable mineral deposits at Paynes Find, an historically significant gold producing region 420km Northeast of Perth, Western Australia and serviced by the sealed, Great Northern Highway and an airstrip.
PFGL has a significant tenement package that includes practically all of the historic Paynes Find Goldfield covering 940ha. Within PFGL's tenement area, which is some 5.5km long by 2km wide, ten major gold-bearing lode lines had been identified together with 36 historic gold mines that mined grades ranged from 15g/t Au to as much as 150g/t Au.
Since listing on the ASX (2 December 2010), the Company has completed geological and structural mapping at scales of 1:5000 and 1:2000 which has identified 41 gold mineralised quartz reefs over a width of 600m across the main northern section of the Paynes Find Goldfield. This is a significant increase on the 10 main reefs reported on in the Prospectus.