Estimates for the Bulyanhulu gold deposit in northwestern Tanzania now exceed 6 million oz., representing an increase of more than 500,000 oz. from previous calculations.
As part of an ongoing feasibility study, Sutton Resources (STT-V) received an updated reserve estimate of its Reef 1 and 0 deposits from Kilborn Pacific Engineering. The Reef 0 deposit is a short splay structure jutting out from Reef 1. Using a database of 385 diamond drill holes and a cutoff grade of 5 grams gold per tonne, Sutton arrived at a total measured, indicated and inferred resource of 14.9 million tonnes grading 12.82 grams gold per tonne. The estimate is equivalent to 6.2 million contained ounces.
Reserves are currently pegged at 5.1 million tonnes grading 13.76 grams gold, or 2.3 million contained ounces. Indicated reserves stand at 3.4 million tonnes grading 12.56 grams gold, or 1.4 million contained ounces.
The inferred resource is estimated to be 6.4 million tonnes grading 12.22 grams gold, or 2.5 million contained ounces.
The Reef 2 resource (situated parallel to, and 500 metres north of, Reef 1) was calculated by a previous operator but, because of a lack of drill data, has not been recalculated. Sutton believes Reef 2 will yield more than its current inferred estimate, which stands at 714,000 tonnes of 11.63 grams gold, or 267,000 contained ounces.
The Reef deposits remain open along strike and at depth. In the new year, diamond drilling will continue to test extensions and new targets.
The mine feasibility study is expected to be completed by April 1998. The final version will include all holes drilled to the end of 1997; this is expected to add another 75 holes to the database. A decline is being driven into Reef 1 in order to test mine 20,000 tonnes of material, and, in 1998, a 973-metre shaft will be installed.
Preliminary estimates indicate that Reef 1 may produce 300,000 oz. gold per year (plus byproducts) at a low cash cost of about US$150 per oz.
Sutton holds an 85% interest in Bulyanhulu, with the remainder held by the Tanzanian government.
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