PERTH (miningweekly.com) – Junior Classic Minerals is advancing work on its Forrestania gold project, in Western Australia, and on Monday announced a toll treatment agreement.
The company said it had secured toll treatment with the Lakewood processing plant, owned by Golden Mile Milling.
The Forrestania ore will not be blended with any other parties’ ore, which Classic said would enable the company to prove the quality of the ore, reinforcing the quality of the Forrestania deposits combined with the certainty around processing the ore, which was expected to yield metallurgical and processing data to feed into feasibility studies.
Furthermore, Classic has also inked a memorandum of understanding with an affiliate of Golden Mine over the possible formation of a joint venture (JV) to provide mining, haulage and treatment costs, in exchange for a proportionate share of profit generated by Forrestania.
“We have been able to leverage all parties’ strengths to achieve a positive outcome for Classic. Should Classic and its partner choose to proceed with extraction of ore from the Forrestania gold project, the JV importantly provides an opportunity to extract and treat ore with reduced risks/costs to Classic,” said MD Justin Doutch.
The formation of the JV is subject to binding agreements.
Classic holds an 80% interest in the Forrestania project, which has an existing resource of some 216 000 oz of gold, with strong exploration upside.