KEY HIGHLIGHTS
- Gold ore sales of 38.3kt at 3.9g/t Au for 4.4koz Au contained from Second Fortune Gold Mine to St Barbara Limited (ASX:SBM) in March 2023 quarter
- Net corporate cash flow of $1.0 million achieved during quarter
- Average received AUD gold price for the March quarter of $2,797/oz including sales in month of March at $2,923/oz
- Exciting progress at priority exploration target Alawa-Cuckoo Hawk Prospect, with strong initial results delivered, averaging 3.8g/t (at surface) – follow up reverse circulation (RC) drilling commenced yesterday
- RC drilling program also completed at Devon Pit Joint Venture with Matsa Resources (ASX:MAT) – results to follow imminently
Linden Gold Alliance Limited (“LGA”, “Linden” or the “Company”) is pleased to announce excellent operating performance during the March 2023 quarter at the Second Fortune Gold Mine in the Laverton region, Western Australia.
The Company’s continued focus on cost reduction, combined with a strong AUD gold price environment, has allowed Linden to maximise margins during the March quarter. During the period, Linden recorded gold ore sales to St Barbara Limited¹ (ASX:SBM) of 38.3kt at 3.9g/t Au for 4.4koz² Au contained.
Linden delivered net corporate cash flow³ of $1.0 million in the March quarter. The Company’s results were supported by an average received gold price for the quarter of AUD$2,792/oz including sales for the month of March at AUD$2,923/oz.
Linden is also pleased to advise that it has made significant progress on its 2023 exploration program, including encouraging initial results from its priority targets at the Alawa-Cuckoo Hawk prospect and the Second Fortune North pit.
Linden Gold Alliance Managing Director, Andrew Rich commented,
“The strong performance at the Second Fortune Gold Mine, as well as the returns from sales to St Barbara, is highly encouraging as we near our Initial Public Offering (IPO) and listing on the ASX in CY2023. The increase in earnings will allow Linden to build a strong platform not only at Second Fortune but also across our portfolio of exploration assets. Promisingly, our exploration program has also delivered positive results with the Alawa-Cuckoo Hawk Prospect now demonstrating its potential. The Company plans to continue its focus on further cost reductions to maximise our operating margins in this positive environment for Australian gold producers.”
Exploration Update
Linden is pleased to report encouraging results from its initial exploration activities at the Alawa-Cuckoo Hawk Prospect, located 2km from the Second Fortune Gold Mine. Initial activities have focused on exposing the reef close to historical underground shafts at surface over a 350m strike (open along strike north and south).
Highlights supported by significant historical drilling intercepts at shallow depths include:
- 8.0m @ 9.5g/t (76gm) from 28m
- 2.0m @ 11.3g/t (22gm) from 38m
- 2.0m @ 29.5g/t (59gm) from 66m
- 1.0m @ 8.2g/t (8gm) from 58m
- 2.0m @ 8.2g/t (16gm) from 78m
Figures 1 and 2. Channel samples from exposed reef at Alawa Pit
Linden completed a grab sample and channel sample program across the exposed reef with grades returned in line with historical data averaging (diluted grade) 3.8g/t at surface. These activities focused across several stacked structures, with grades associated with contact with heavily sheared unit.
Linden commenced a priority follow-up RC drilling program yesterday, with results underpinning maiden Mineral Resource work. The Alawa-Cuckoo Hawk prospect is on a granted mining lease.
At the Devon Pit Joint Venture with Matsa Resources, Linden recently completed the RC drilling program which commenced on 19 March?. The program has been managed by Linden and comprised 15 RC holes for approximately 1,176m. Results from this program are expected early May.
Linden completed a grab sample and channel sample program across the exposed reef with grades returned in line with historical data averaging (diluted grade) 3.8g/t at surface. These activities focused across several stacked structures, with grades associated with contact with heavily sheared unit.
Linden commenced a priority follow-up RC drilling program yesterday, with results underpinning maiden Mineral Resource work. The Alawa-Cuckoo Hawk prospect is on a granted mining lease.
At the Devon Pit Joint Venture with Matsa Resources, Linden recently completed the RC drilling program which commenced on 19 March4. The program has been managed by Linden and comprised 15 RC holes for approximately 1,176m. Results from this program are expected early May.
Figure 3. Location of Alawa Pit
Figure 4. Modelled strike of quartz vein at Alawa Pit
Second Fortune
At Second Fortune, Linden completed work on the historical north section of the open pit, with an excavator cleaning off the floor of the pit to expose the quartz reef. Encouragingly, a 250mm width vein was exposed with grab samples returning assays of:
- 125.85g/t
- 66.79g/t
- 8.95g/t
Linden will now complete further work to determine whether a cutback of the pit is possible targeting low cost, high margin ounces into the short-term mine plan. Historical production from the Second Fortune open pit graded +13g/t.
Figure 5. Encouraging assay results have been received from Second Fortune
Figure 6 and 7. Exposure of the Second Fortune Main lode in the northern pit
¹Refer to Linden announcement dated 27 January 2021 for Toll Processing Agreement with SBM
² Subject metallurgical reconciliations and on a 100% contained basis
³ Adjusted EBITDA with capitalised underground mining costs and corporate costs included
4 Refer Linden announcement dated 21 March 2023 for RC drilling program
