Laneway Resources gained 10.7 per cent after announcing its first gold pour from the Sheerwood Deposit.
Ore recovered is estimated at roughly 1,300 tonnes, reaching a high-grade average of 15g/t Au. The gold comes from the Agate Creek Project, fully owned by the company.
The pour produced three gold and silver bullions, collectively weighing 22kg.
Original estimates by the company were expectant of only 1.46g/t AU. The company now expects to recover gold above the 15g/t range as they mine deeper.
The company is experiencing processing rates at roughly 15 tonnes per hour, expected to increase over time. Laneway is currently targeting 25 tonnes per hour goal.
Mining is expected to continue for the next 10-12 weeks. The announcement comes only 10 weeks after the acquisition of the mining lease.
Immediate cash flow will be used to establish a financial platform for the company to progress current projects elsewhere in Australia and New Zealand Gold assets.
Processing is currently carried out at Maroon Gold’s processing plant. Maroon currently owns 40 percent interest in gold poured.
Maroon and Laneway share all state government and third-party costs.
Planning for further drilling programs at Agate Creek is already underway.