Comet vale

In March 2013 it was announced that Crest Minerals were to acquire the Comet Vale Gold Project from Reed Resources. The sale will mean the main gold mines making up the project, the Sand Queen ñ Gladstone mines, will be coming out of care and maintenance. The Comet Vale Gold Project that is 100 kilometres from Kalgoorlie in Western Australia's rich Eastern Goldfields Region includes infrastructure and a 280,000 tonne toll milling agreement for the next four years.

Gold Mining Began at Comet Vale as Early as 1904

The Comet Vale region has been involved with gold mining since 1904. Gold mining in the area ceased in 1938 during the final years of the Great Economic Depression and the threat of the Second World War looming but up until that time the area had produced 245,000 tonnes of ore with 181,000 ounces being recovered. Mining in the area resumed again between 2006 and 2010 with Reed Resources producing 80,000 tonnes of ore delivering 10 grams per tonne resulting in it recovering 26,000 ounces of gold. This result was achieved with the use of hand held mining machines and the ore being taken to the surface by means of a vertical shaft. Gold resources at the Comet Vale Gold Project are estimated to be 534,000 tonnes at 10,8 grams per tonne that would return the company 186,000 ounces. The project also includes several shallow prospects adjacent to the existing infrastructure that contain 320,000 tonnes grading at 2.4 grams per tonne which would deliver a further 24,600 ounces.

Crest Minerals in the Process of Acquiring the Comet Vale Gold Project From Reed Resources

Crest Minerals have announced that following the acquisition of the Comet Vale Gold Project they would continue gold exploration activities that would include the Sand Queen - Gladstone gold mines with the hope of taking them out of care and maintenance in 2014.

Reed Resources Began Mine Recovery in 2002

In 2002/3 Reed Resources refurbished and de-watered the Sand Queen shaft to level four and it was found the old workings were excellently preserved and geological mapping of the old mine confirmed previous models. Kingsrose Pty Ltd, the joint venture partner at the time, erected a head frame in 2005 and gold production got underway once again for the the first time in 68 years. The joint venture partnership broke up in 2010 resulting the mine being placed on care and maintenance while awaiting a more suitable ore treatment plant.

Indicated and Inferred Gold Resource at Comet Vale Substantially Increased

In early 2010, as a result of extensive exploration drilling, the gold resource held at Comet Vale was increased to 186,000 ounces with a grade of 10.8 grams per tonne. This brought the total inferred and indicated mineral resource to 534,000 tonnes from which 186,000 ounces of gold could be recovered.

When the Comet Vale Gold Project is re-commissioned and starts production once again it will be as a fly in fly out operation with mine workers living in a mining camp on site when rostered on duty. There is no town of any substance at Cometvale and the mine is too far removed from any sizable residential town to allow for workers to commute to the mine on a daily basis.