The potential for a new underground Australian gold mine has been boosted with new studies and drill results showing the deeper mineable target hosts at least 56,000 oz of economically recoverable gold. The inventory is contained below the current open-pit mining operations of WA gold miner, Empire Resources at its Penny’s Find gold mine, 50 km northeast of Kalgoorlie in Western Australia.

The new underground resource announced by Empire today comprises a 2012 JORC compliant Indicated and Inferred estimate of 248,000 t @ 7.04g/t Au extending from the eventual 85 m depth of the current Penny’s Find open-pit, to at least 250 m below surface.

Tantalisingly, the mineralisation, defined by a 1.5g/t Au cut-off, remains open at depth.

Empire’s Managing Director, David Sargeant, said the positive resource is welcome, as the company hopes to complete a final feasibility study by the end of March on taking Penny’s Find underground once the open-pit inventory is exhausted.

The new resource estimation was calculated by DataGeo Geological Consultants and incorporates results from recent diamond drilling by Empire at the mine site.

“The estimate is a robust outcome in terms of the gold tonnes and grade existing beneath the currently operating open pit,” Sargeant said.

“As the resource remains open at depth, some further deeper drilling will be required from underground, should the final feasibility results be positive.”

Empire holds a 60% stake in Penny’s Find with private entity, Brimstone Resources Ltd holding the remaining 40% equity.

To date, ore mined from Penny’s Find is being processed at two local mills in the broader Kalgoorlie region.