- Junior explorer Meteoric Resources (MEI) rises in early trade after upgrading the mineral resource estimate (MRE) for its Juruena project in Brazil
- The company increased the resource estimate by more than 50 per cent to 1.9 million tonnes at 6.3 grams per tonne of gold for 387,000 ounces of gold
- Managing Director Dr Andrew Tunks says Meteoric can now start to seriously assess development scenarios at the project for the first time
- According to the new resource estimate, over 200,000 ounces of gold lie less than 100 metres below the ground surface at Juruena
- Shares in Meteoric Resources are up 1.92 per cent and trading at 5.3 cents each at 10:10 am AEST
Junior explorer Meteoric Resources (MEI) has risen on the ASX today after upgrading the mineral resource estimate (MRE) for its Juruena project in Brazil.
The upgraded resource comes on the back of some major drilling work completed at the Dona Maria, Querosene, and Crentes deposits over the past two years.
In light of this drilling, the Juruena mineral resource now stands at 1.9 million tonnes grading an average 6.3 grams per tonne (g/t) gold for 387,000 ounces of gold — an increase of over 50 per cent compared to the previous resource.
Of this, 156,800 ounces of gold are classified as 'indicated', while the remaining 186,300 ounces are classified as 'inferred'. These classifications denote the level of confidence Meteoric has in its estimates, with indicated resources reflecting higher confidence and inferred reflecting lower.
For comparison, the previous resource estimate for the Juruena project was 1.3 million tonnes at 6.3 g/t of gold for 261,000 ounces of gold.
Meteoric Managing Director Dr Andrew Tunks said this "substantial" increase of the mineral resource will allow the company to seriously assess development scenarios at the project for the first time.
"With 40 per cent of the global resource classified into the indicated category, we now have sufficient significant resources to update the 2017 scoping study and prepare an application for a mining lease," Dr Tunks said.
"Having now seen this significant increase in total ounces, we have looked at using different cut-offs for shallow and deeper mineralisation and it's clear there is great potential for both initial open-pit mining to moderate depths followed by deeper underground mining."
He said these ideas will be "rigorously examined" as the company takes on further development studies at the Juruena project.
Of the 387,000 ounces of gold in the new MRE, over 200,000 ounces lie less than 100 metres below the ground surface at the project.
Meteoric also owns the Novo Astro project in Brazil, just 30 kilometres east of Juruena.
On top of these Brazilian assets, the company also owns the Palm Springs gold project in Western Australia and a string of cobalt projects in Canada.
Shares in Meteoric Resources were up 1.92 per cent and trading at 5.3 cents each at 10:10 am AEST.