JOHANNESBURG (miningweekly.com) – The Eureka gold mine, north of Kalgoorlie, Western Australia, has transitioned from development to mining operations, ASX-listed Tyranna Resources reported on Thursday.
The mine, which Tyranna is acquiring from Canada-listed Central Iron Ore, is currently being mined by a local contractor, Eureka Mines. Production is scheduled to extend the depth of the current openpit by about 20 m and will be completed in the March quarter.
Once this phase is completed, Tyranna will estimate an updated ore reserve with the aim of restarting mining pending the results of a feasibility study.
Tyranna said mining activity at Eureka has triggered a payment of $250 000 from the local contractor, being a prepayment of the 4% net smelter royalty generated from the sale of any gold.
The company announced on December 1 that it would acquire the Eureka mine for $3.2-million, comprising $1.6-million cash and $1.6-million in shares.