Resource Estimate Hits 3 Moz Gold for Idaho Gold Project
The new numbers and potential for further growth are discussed in an Echelon Wealth Partners report.
In a Feb. 3 research note, Echelon Wealth Partners analyst Gabriel Gonzalez reported that Revival Gold Inc.'s (RVG:TSX.V) updated mineral resource estimate for Beartrack-Arnett Creek hit its target of 3 million ounces of gold (3 Moz), up from 2 Moz, and further upside remains.
"We believe that Revival has the potential to demonstrate additional resource growth potential to drive further project value," Gonzalez commented.
Both the mill resource and heap-leach resource were updated. The new total mill resource, including Indicated and Inferred ounces, is 2.4 Moz gold at a grade of 1.47 grams per ton (1.47 g/t). This reflects a 46% growth in ounces and a 3% increase in grade over those in the previous estimate.
The new total heap-leach resource is 580,000 (580 Koz) gold at a grade of 0.56 g/t. These updated amounts changed from the previous ones by +76% and -23%, respectively, "with the decrease due to the exclusion of historical RC drill holes from the estimate, and a conservative 75% assumed metallurgical recovery (compared to >90% in preliminary bottle roll tests)."
Gonzalez pointed out that further heap-leach resource potential exists. For Beartrack specifically, the total resource now stands at 384 Koz, up 16%, at a grade of 0.55 g/t, down 24%. The differences in those numbers are due to use of a 15% lower mining cost of $2.25 per ton and a lower cutoff grade of 0.17 g/t (versus 0.26 g/t).
Regarding Arnett Creek, its total resources are now 196 Koz gold, down 48%, at a grade of 0.58 g/t, down 34%. The changes are due to the exclusion of historical reverse circulation drill hole results from the estimate along with a conservative assumed metallurgical recovery of 75%. "There is substantial opportunity for a pickup in ounces and grade as work on Arnett Creek is advanced," wrote Gonzalez.
Additional heap-leach resource potential exists through possible expansions to the main Haidee target and other Arnett Creek areas. At Beartrack, growth potential exists on the delineated 5 kilometers (5 km) of strike and at depth of it as well as to the south, where Revival identified another 5–6 km structure.
Gonzalez purported that "mill resource growth will drive longer-term project upside." The mill could produce more than 250 Koz per year in addition to the projected 50 Koz per year of heap-leach production. This could move the project to a production level of interest to intermediate and senior gold producers.