Doray Minerals is Australia’s newest high-grade gold producer.
Its flagship property is the Andy Well gold project located in the
Murchison region of Western Australia, 45 kilometres north of
Meekatharra, where the company completed its first gold pour on
5
August 2013.
In fact, Doray has undergone a rapid transition from listing on
the Australian Securities Exchange in February 2010 to discovery,
development and now into production in just three and a half
years – an extraordinary achievement, which is testament to the
dedicated and experienced Doray team.
Managing director Allan Kelly said that in addition to being
Australia’s and Western Australia’s newest high-grade gold
producer, Doray’s Andy Well gold project was the first new gold
mining operation in the Murchison in over 10 years.
“
The nature of the high-grade ore body, the Wilber Lode, meant
development of the Andy Well project was likely from an early
stage,” Mr Kelly said.
“
The team has worked tirelessly, achieving each milestone and
target as planned, and the result is that Doray is now a high-grade
gold producer in its own right.”
He further explained that high-grade ore equated to high
margins, and that the discovery hole intersected high-grade
visible gold in quartz lode 50 metres north-east of the existing
drilling and returned results of 9 metres @ 42.97 grams per tonne
(
g/t) including 3 metres @ 114.51g/t.
“
A further two holes hit similarly graded mineralisation in the
same quartz lode, giving us 100 metres of strike of high-grade gold
mineralisation from the first drilling program.”
That was the start of Doray’s positive trajectory with further
drilling and exploration success, a maiden high-grade JORC
compliant resource and reserve, a secure $55 million project
finance facility, construction of a 120-person camp in Meekatharra,
construction and commissioning of a processing plant and the
establishment of open pit and underground mining operations.
“
It has been an extraordinary progression from discovery in
February 2010 to open pit mining in November 2012, and then our
first gold pour in August 2013,” said Mr Kelly.
“
The strength of the project and its high grades enabled us to
secure a favourable finance package and hedging policy.”
Doray hedged 45,000 ounces over 14 months at $1,620 per
ounce, which is about 50% of forecast production in the first year.
“
That will allow us to pay down debt quickly and keep
exploration spending up, which has always been our plan – to
become a successful gold producer and self-funded explorer,”
added Mr Kelly.
The high-grade JORC mineral resource from two quartz lode
gold deposits (Wilber and Judy lodes) is 1.2 million tonnes @
11.3
g/t Au for 444,000 contained ounces. The initial Wilber Lode
mining reserve stands at 733,000 tonnes @ 10.6g/t Au for 250,000
contained ounces.
Mr Kelly said excellent potential exists to increase the mining
reserve from the high-grade parallel Judy Lode resource, which
has been tested to 250 metres and remains open at depth. “There
is substantial exploration upside and potential for multiple
deposits at Andy Well,” Mr Kelly explained. “There is significant
near-term potential for increases to the initial mine life at Andy
Well, which currently stands at 3.7 years.
“
The Wilber Lode is still open below 450 metres and the Judy
Lode is a second high-grade gold deposit, with a maiden
high-grade 106,000 ounce resource. This deposit represents
Allan Kelly
Managing Director
Doray Minerals Ltd
Processing plant at the Andy Well gold project
Listing to production in lightning time
High-grade
performance
Minesite 2013
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