The updated resource is 35.7 million tonnes grading 0.53 grams per tonne gold and 9.4g/t silver for 610,000oz gold and 10.8Moz silver. This represents a 16% increase in measured and indicated gold ounces, and 12% to silver ounces compared with the 2017 resource. The inferred resource increased by 30% for both gold and silver.
"With the new addition to the resource, Gold Springs is closer to the 1Moz mark, which is an important milestone for any gold deposit," president and CEO Matias Herrero said.
"The four deposits included in the 2020 resource remain open to expansion in multiple directions, and they represent just four of the 28 outcropping gold targets identified on the property to date."
The PEA outlined a 15,000 tonnes per day heap leach operation to produce more than 61,000oz/y at an all-in sustaining cost of US$837/oz for eight years following an initial capital investment of $83.5 million. The project would yield an after tax net present value of $153.6 million at a 5% discount rate and internal rate of return of 38.9% at a $1,450/oz gold price.
The company plans a $2.4 million, 8,700m drilling programme for the second half of 2020 leading towards another resource update towards year end. It will also undertake more metallurgical testwork.
Shares in Gold Springs Resource are trading at C8c, valuing the company at $27 million.