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Snow Peak starts mining at Baal Gammon

17th March 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Snow Peak Mining has restarted copper operations at the Baal Gammon mine, in Queensland.

Snow Peak acquired Baal Gammon as part of a A$40-million deal with embattled Kagara, which also included the acquisition of a processing plant at Mt Garnet, and the Einasleigh and Maitland exploration projects.

Snow Peak has the right to operate the Baal Gammon mine under a mineral rights agreement, and was responsible for all costs and obligations to mine the development area.

ASX-listed Monto Minerals, which is the project owner, is entitled to a 2.5% net smelter royalty (NSR) on all metals for the first 550 000 t of ore processed, and a 2% NSR on all metals over this.

First cash flow from the Baal Gammon mine was expected by April.

Mining activities at Snow Peak’s Surveyor mine were also continuing to ramp-up, with the two projects to be mined concurrently to provide ore feed to the Mt Garnet concentrator.

Edited by Creamer Media Reporter

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