TORONTO (miningweekly.com) – Nevada-focused gold producer Klondex Mines has secured a second toll-milling contract this year following its C$83-million acquisition of the Midas mine and mill, located in Nevada, from a Newmont subsidiary.
Vancouver-based Klondex on Wednesday announced that it had agreed to process high-grade ore produced from LKA Gold’s Golden Wonder mine at the Midas mill.
The one-year toll-milling agreement with LKA could be renewed on a yearly basis and would provide for ore grading 51.4 g/t of gold from the Golden Wonder mine, near Lake City, Colorado, to be delivered to the Midas mill for processing. Under the toll-milling agreement, all doré produced would become the property of Klondex and the company would pay LKA the value of the recovered gold minus all toll-milling charges.
“This agreement marks the second toll-milling agreement put in place since we bought Midas in February. Processing third-party material makes good use of the mill, while still leaving us with ample capacity as we continue to develop the Midas and Fire Creek mines. We look forward to working with the LKA team on the Golden Wonder project,” Klondex VP for business development and technical services Mike Doolin said.
Klondex said it was currently evaluating other toll-milling opportunities to determine which materials were best suited to being processed at the Midas mill.