PERTH (miningweekly.com) – Junior gold miner Empire Resources has started dispute proceedings with Eastern Goldfield Milling Services (EGMS) over the toll treatment agreement of the Penny’s Find gold mine, in Western Australia.
Empire was seeking to recover more than A$830 000 owed to the company following the November and December toll treatment of ore from the Penny’s Find joint venture by EGMS.
Empire claims that EGMS has failed to pay 384.748 oz of gold resulting from the final gold-in-circuit conducted at the Burbanks facility, following termination of the milling campaign in December.
Empire also claims that EGMS has failed to account for some 315 oz of gold contained in ore that was delivered to the Burbanks facility, while also overcharging for toll milling fees due to errors in calculating the belt calibration adjustments.
The ASX-listed Empire told shareholders on Thursday that if the matter could not be settled by negotiations between the two companies, Empire would proceed to formal arbitration.