PERTH (miningweekly.com) – Gold developer Blackham Resources has signed an agreement with fellow-listed Intermin Resources to purchase their calcine tailings stockpile next to the Wiluna plant, in Western Australia.
The stockpile had an indicated mineral resource estimate of 370 000 t, grading 5 g/t gold for some 59 500 oz and was located adjacent to the Wiluna gold plant.
The calcine tailings were the residual product from cyanidation of roasted sulphide concentrates produced prior to World War II from Wiluna gold ores.
Blackham would pay A$1.5-million in cash for the tailings, in two tranches, with the first A$800 000 payment made on the execution of the transaction, and the balance due by the end of December this year.
Blackham told shareholders on Friday that the purchase of the tailings stockpile gave the company greater flexibility over the placement of tailings within the direct vicinity of the Wiluna plant.
In March this year, Blackham pulled the trigger at its Matilda gold project after approving the refurbishment of both the Wiluna plant equipment and the camp.
A prefeasibility study in late 2015 found that the Matilda mine would require a capital investment of A$28-million to deliver an average 100 000 oz/y over a mine life of nearly five years, at a life-of-mine C1 cash cost of A$920/oz.
It was expected that the project would make use of mining contractors and would employ openpit operations for the Matilda, Williamson and Galaxy deposits, while two underground mines had also been designed for the Wiluna deposit.
Intermin meanwhile said that funds from the sale would be used to advance the development of its Teal project, in Western Australia, while the company would retain full ownership of the calcine processing technology that had been employed at the stockpile.