PERTH (miningweekly.com) – Gold ore production has started at the Geko project, in Western Australia.
ASX-listed Coolgardie Minerals on Wednesday announced that the sale of the oxide ore will start in mid-November under a sales agreement with gold miner Northern Star.
Northern Star will take ownership of up to the first 100 000 t of oxide ore produced from Geko, at a fixed gold price of A$1 650/oz.
“Revenue will commence next month from our ore sales to Northern Star and the 1.6-million-tonne reserve will continue to be mined over the next 13 months,” said Coolgardie MD Bradd Granville.
The ore has been mined and stockpiled with an initial mined grade of 3.5 g/t gold.
Geko is estimated to host a mineral resource of 136 000 oz, grading 1.6 g/t gold, and a reserve of some 1.5-million tonnes, at an average grade of 1.8 g/t gold.