Comet Vale - Gold
OVERVIEW
The Comet Vale project is located approximately 100 km north of Kalgoorlie and covers an area of 25 km2 surrounding the historic Comet Vale gold mining centre. The Company's granted mining leases encompass the historically significant Sand Queen-Gladsome Gold Mines which produced 185,372 ounces of gold at a recovered grade of 22.7 g/t Au.
Sand Queen Gold Mine
The historic Sand Queen-Gladsome Mines produced 185,372 ounces of gold up to 1937. Little of the previous exploration had systematically explored for repetitions of the high-grade Comet Vale lode that had been mined in the Sand Queen and Gladsome workings. Exploration has identified remnant ore blocks, represented as the Sand Queen South resource.
In 2002/3 the Company dewatered and refurbished the Sand Queen Main Shaft down to 4 Level. The old workings were found to be in excellent condition and geological mapping of the underground confirmed the geological model. Joint Venture partners Kingsrose Pty Ltd erected the new headframe in August 2005. Gold production commenced in June 2006, some 68 years since ore was last hoisted from the shaft.
The JV was wound up in May 2010 and the project was put on Care and Maintenace, pending suitable ore treatment facilities, on June 1, 2010.
Geology
The gold lodes at Comet Vale are aligned along a shear zone that parallels the boundary between the basalt and ultramafic rocks to the east.
The lodes are closely associated with but post-date a number of parallel porphyry dykes. Exploration programmes have focused primarily on the parallel lodes that make up the Sand George deposit. The two principal lodes SG1 and SG2 have been drilled to a vertical depth of 400 meters..
HIGHLIGHTS
In April 2010, the gold resource was increased to 186,000oz Au and the grade was increased to 10.8g/t. The total Indicated and Inferred Mineral Resource now comprises 534,000 tonnes at an average grade of 10.8g/t Au for 186,000 ounces of gold.
2010-08-18 00:46:31
NEWS FLOW...
May 6, 2010
Sand Queen to go on Care and Maintenance from June 2010
Operations at the Sand Queen Gold Mine will be placed on hold in June 2010.
Decision made due to lack of assured toll processing capacity.
A Pre-Feasibility Study evaluating refurbishment of the Nimbus Gold Plant is due to be completed by June 2010.
More...April 8, 2010
New Gold Resource for Sand Queen Gold Mine
Resource increased to 186,000 oz Au.
Increase in grade from 8.6 to 10.8 g/t Au.
Robust geological model based on mine production.
More...March 26, 2010
Gold Production Update
Latest gold ore sale of 14,600t at 14.12 g/t Au.
Reed attributable share 2,468oz.
New Mineral Resource Estimate due second week April 2010.
More...October 16, 2009
Reed retains 100% ownership of Sand Queen Gold Mine
Reed and Kingsrose have agreed to terminate the Production Joint Venture effective June 1, 2010.
Reed will be entitled to 100% of production from June 1, 2010.
Reed will pay Kingsrose A$1M in cash and A$2M in shares.
Reed will also aquire the associated mining assets and infrastructure for A$1M cash.
This will allow Reed to expand production from the underground operations as well as to potentially exploit shallow open-pit resources.
More...September 1, 2009
Reed exercises option to acquire Nimbus Processing Plant
Reed have exercised option to acquire Nimbus Silver Project and Processing Plant in Kalgoorlie for A$2.25M;
Acquisition funded by recent successful A$6.4M Capital Raising to institutional and qualified investors and fully underwritten A$4.5M Shareholder Purchase Plan;
The plant offers a long term milling solution for the Company’s highgrade Sand Queen Gold Mine operations.
More...April 28, 2009
Option to buy strategic processing plant
PROCESSING PLANT
Option secured over 250,000 tpa precious metal processing plant.
Creates the potential to remove milling risk/production limits from current processing/oresale arrangements.
COMET VALE
Resource optimization and reserve calculations underway enable fast track evaluation of open pit operations (100% RDR).
Combined, shallow (<50m) measured and indicated resources at Comet Vale currently stand at 192,000 tonnes at 2.6 g/t Au for 16,200 ounces of gold.
More...March 4, 2009
Gold Production Update and Forecast
5,656t of ore grading 9.21g/t Au was sold in February which should net Reed approx. 770oz. The final price received for the gold is dependant on a determination of the average gold price for the month of February.
Attributable production for DecH08 was 2,424oz at a cash cost of A$558/oz.
Forecast attributable production for the JuneH09 is 1,600oz. The reduced production relative to the DecH08 is due to the refurbishment of the shaft from the 3Level to the 4Level and development of the 4Level.
Forecast attributable production for 2010 is 5,200oz.
More...January 30, 2009
Quarterly Activities Report
Record grade of milled ore with 4,262 t @ 14.7 g/t Au.
34% increase in Mineral Resource estimate to 182,600 ounces of gold.
The 4 level was dewatered and work has commenced on establishing rail-mounted access.
Cash costs of production for the quarter were A$551/oz.
More...December 22, 2008
Record Gold Grade
The highest grade gold ore parcel produced so far from the Sand Queen Gold Mine has been sold.
The parcel of 4,055t @ 14.7g/t Au is 50% higher than the previous highest reconciled grade of ore treated or sold.
More...December 2, 2008
Gold Resource Increased by 34 per cent at Comet Vale
Gold resource is increased by 34% to 182,600oz of gold as a result of recently completed resource extension drilling.
The total Indicated and Inferred Mineral Resource now comprises 661,000 tonnes at an average grade of 8.6g/t Au for 182,600 ounces of gold.
More...October 31, 2008
Quarterly Activities Report
Record ore production from underground during the quarter totalled 7,710 tonnes at an estimated grade of 9.5g/t Au.
Completion of an infill and extension RC/diamond drilling program (6,746 metres) has confirmed the narrow, high-grade ‘nuggety’ style of gold mineralisation at Comet Vale, including intersections of 0.42m @ 50.9g/t Au and 0.51m @ 73.6g/t Au.
More...October 24, 2008
Gold Exploration Success at Comet Vale
Reed has successfully completed a near-mine exploration drilling programme at Comet Vale with several high grade quartz lode intersections in excess of 10g/t Au being intercepted. These include:
- 0.51m @ 73.6g/t Au from 338m in JDV028
- 0.42m @ 50.9g/t Au from 391m in JDV014
- 6.18m @ 11.1g/t Au from 173m in JDV022
- 1m @ 15g/t Au from 14m in JVC067
- 0.84m @ 13.6g/t Au from 133m in JDV019
- 1m @ 10.6g/t Au from 119m in JDV0.23
- 0.59m @ 10.6g/t Au from 309m in JDV029
October 7, 2008
Record Quarterly Gold Production
Record quarterly gold production of approx. 4,300oz was produced from the Sand Queen gold mine in the September Quarter from approx. 12,000t of ore grading 11.1g/t.
In addition, a resource extension drilling programme was completed.
Financial and assay results are expected to be available near the end of the month.
More...July 30, 2008
Quarterly Activities Report
A record ore production this quarter totaled 7,556 tonnes at an estimated grade of 12.1g/t Au, including 5,672 tonnes of high grade ore at an estimated grade of 13.8g/t Au.
The latest milling campaign contributed 700 ounces at a cash cost (C1) of A$398/oz - generating a margin of A$566/oz.
More...May 29, 2008
Gold Production - Latest Milling Results
Fifth toll treatment campaign produces 1,466 oz Au (Reed's 50% share = 700oz).Estimated C1 Cash Costs of A$398/oz generate a margin to Reed of A$566/oz.
More...April 28, 2008
Quarterly Activities Report
Latest milling results in record cash margin of A$700/oz.Arrival of first international workers to expand production rates.
More...February 25, 2008
Kingsrose Mining Quarterly Report
Detailed mine plan and budget for 2008 being developed.Kalgoorlie based specialist geological consultancy contracted for Comet Vale.
Rail development on 3 Level completed; stope development above 3 Level progressing. More...
February 8, 2008
Gold Production Update
Fourth toll treatment campaign produces 1,235oz Au (RDR share 608oz).Estimated C1 Cash Costs of A$311/oz generating margin of A$700/oz. More...
November 1, 2007
Gold Production - JV Expansion
Kingsrose to increase production to 5,500 tonnes per month (from current 3,000 tpm) and extend development of Sand Queen Gold Mine to the 4 and 5 Levels.Comet Vale project JV partner, Kingsrose Mining Ltd, extended first right of refusal to develop new underground gold deposits over all Comet Vale tenements.
Reed exploration focus returns to targeting additional near-mine resources with new RC drill program commencing next week. More...
October 18, 2007
Gold Production Update
Third toll treatment campaign produces 1,498 oz Au.Estimated cash cost A$498/oz, generating margin of A$332/oz. More...
September 20, 2007
Comet Vale Gold Production and Exploration Update
- Third toll treatment campaign to commence this weekend.
- Ore grades and production levels increasing.
- Resource Extension Diamond Drilling commencing this week.
July 26, 2007
Quarterly Activities Report
Underground development and ore production ramp up continuing, including completion of 3 Level access to Sand George lodes. Open pit study progressing well. More...July 24, 2007
Comet Vale Gold Resource Upgrade and Testwork Update
Gold resource upgrade for the Princess Grace deposit (9,000 ounces). Combined shallow (< 50m depth) Measured and Indicated Resources for open pit study now 192,100t @ 2.62 g/t Au for 16,200 ounces.Excellent metallurgical recoveries (> 87%) from column leach test work.
Open-pit optimisations and reserve calculations underway.
Mineralisation is shallow, in unweathered rock, and potentially amenable to low-cost open pit mining and vat-leach extraction. More...
June 7, 2007
Gold Production and Exploration Update
Exploration - the company commenced a drilling campaign targeting major strike extensions to the high grade Sand Queen - Sand George orebodies. Ore Production - to date the ore widths and grade appear to be consistent with the ore resource model. More...
May 22, 2007
Gold Resource Extension Drilling & Test Work Update
Reed Resources is pleased to announce additional high grade gold drill results which extend the strike of the Princess Grace resource (130,000t @ 2.5g/t Au for 10,300oz gold) at its Comet Vale Project. More...
May 16, 2007
Maiden Resource Estimate for New Gold Discovery
Reed Resources Ltd is pleased to announce the initial resource estimate from its new gold discovery, the Princess Grace, at its Comet Vale Project. More...
April 27, 2007
Third Quarter Activities Report
The cash cost per ounce was A$456, and the average price received was A$817. “Cash costs” include all expenditures by Reed, directly incurred on mining and milling, plus overheads and all royalties. More...
March 21, 2007
Comet Vale Gold Production
A parcel of 4,161 tonnes of development and stoping ore from the Sand George deposit has been processed at Higginsville Mining’s Greenfields plant at Coolgardie during March. The bullion reconciled grade was 7.67 g/t Au, exceeding the expected grade by 16%. A total of 1,006 ounces of gold and 66 ounces of silver have been extracted of which 493 ounces of gold has been credited to Reed. More...
January 8, 2007
Comet Vale Drilling Results
Reed Resources Ltd is pleased to announce the latest results from reverse circulation (RC) drilling of a newly defined gold lode at its Comet Vale operations 100 km north of Kalgoorlie. Intersections of the new lode, referred to as the Princess Grace lode (Figure 1), include 5 m @ 10.63 g/t Au from 16 m down-hole, 9 m @ 6.9 g/t Au from 34 m (including 3 m @ 19.0 g/t Au from 40 m) and 2 m @ 4.03 g/t Au from 33 m (including 1 m @ 7.1 g/t Au from 33 m). More...
November 24, 2006
Comet Vale Project Update
Kingsrose will accelerate the development of the high-grade Sand George lodes, albeit delaying the mine reaching full production (20,000 oz – RDR share 10,000 oz) until the June quarter 2007, not December 2006 as forecast. Consequently, production guidance of 10,000 oz attributable to Reed from the Kingsrose Joint Venture for the 2006/07 year has been revised down to 2,000 oz. More...
October 31, 2006
First Quarter Activities Reportpp
During the quarter mining and development continued past the southern extremity of the Sand Queen resource and has now intersected the northern end of the Sand George ore body on the 2 Level. A ventilation and secondary access shaft near the old Sand King workings is nearing completion. More...
July 28, 2006
Fourth Quarter Activities Report
The cash cost per ounce was A$523, and the average price received was A$798. “Cash costs” include all expenditures by Reed, directly incurred on mining and milling, plus overheads and all royalties. The cash cost is expected to decrease as the proportion of stoped ore to development ore increases as mining of the Sand George lodes reaches a more advanced stage. During the quarter a re-evaluation of the mineral resources has resulted in an increase in the combined Mineral Resource to a total of 360,000 t @ 11.8 g/t Au for 136,000 ounces of gold (at 5 g/t cut-off). More...
June 27, 2006
First Gold Production
Reed Resources Ltd announces the results of the first toll-treatment campaign of ore from the Sand Queen Gold Mine. A total of 643 ounces of gold and 129 ounces of silver have been extracted of which 315 ounces of gold has been credited to Reed. More...
May 9, 2006
Resource Increase and Project Update
Reed Resources announces a 75% increase in the gold resources at the Comet Vale Project following a re-evaluation of the latest extension and infill drilling programme at the company's Sand Queen mining operation. The combines mineral resource has been increased to a total of 295,000t@12.0g/t Au for 114,000 ounces gold (at 5g/t cut-off). More...
April 28, 2006
Third Quarter Activities Report
To date, 1,000 tonnes of ore has been hoisted to surface, of which about 200 tonnes has been stockpiled at the Greenfields mill in preparation for initial toll treatment of the ore, which is scheduled for early June. More...
February 28, 2006
Comet Vale Extension Drilling Results
Reed Resources Ltd announces the successful completion of a resource extension drilling program, which has doubled the strike extent of the Sand George lodes at the Comet Vale project. More...
January 31, 2006
Second Quarter Activities Report
During the quarter, Hellman & Schofield Pty Ltd completed an estimation of Mineral Resources at the Sand Prince West deposit, which included the results of infill grade control drilling and resource extension drilling undertaken during the September quarter, 2005. The combined Mineral Resource is now estimated to be 121,150 tonnes at a grade of 2.39 g/t Au, for 9,310 ounces of gold (at a 1 g/t Au cut-off). At a higher cut-off grade, the combined resource is estimated to contain 67,440 tonnes at a grade of 3.15 g/t Au, for an estimated 6,820 ounces of gold (at 2 g/t Au cut-off). More...
January 13, 2006
Comet Vale Resource Extension Drilling
Emerging gold producer Reed Resources Ltd will commence on Monday 16th January, an infill and extension RC/diamond drilling program at its Sand Queen Gold Mine at Comet Vale. More...
December 14, 2005
Underground Operations Commence at Comet Vale
The Board of Reed Resources is pleased to announce the commencement of underground operations at the Sand Queen Mine at Comet Vale, 100km north of Kalgoorlie. More...
October 20, 2005
First Quarter Activities Report
The Joint Venturer’s received approval to recommence underground development following receipt of approvals from the Department of Industry and Resources for the Notice of Intent and the Project Management Plan and a land clearing permit from the Department of Environment. More...
July 26, 2005
Fourth Quarter Activities Report
Hellman & Schofield Pty Ltd were commissioned to calculate a Mineral Resource for the Sand Prince West lode. This resulted in combined Mineral Resource of 34,600 tonnes at 3.90 g/t Au for 4,330 ounces gold (at 1 g/t Au cut-off grade), as detailed below. More...
June 1, 2005p
Comet Vale Resource Estimate and Project Update
Re-evaluation has confirmed a combined Indicated and Inferred Mineral Resource of 167,000 tonnes at 12.1 g/t Au for 65,700 ounces in the SG1 & SG2 lodes, using a 5 g/t cut-off. Although the revised Indicated Resource contains approximately 19% less ounces than the previous resource model (267,000 tonnes @ 8.1 g/t Au, using a 2 g/t cut-off), the financial outcome is markedly superior due to the higher grade and 45% reduction in tonnage. More...
