PERTH (miningweekly.com) – Snow Peak Mining has restarted copper operations at the Baal Gammon mine, in Queensland.
Snow Peak acquired Baal Gammon as part of a A$40-million deal with embattled Kagara, which also included the acquisition of a processing plant at Mt Garnet, and the Einasleigh and Maitland exploration projects.
Snow Peak has the right to operate the Baal Gammon mine under a mineral rights agreement, and was responsible for all costs and obligations to mine the development area.
ASX-listed Monto Minerals, which is the project owner, is entitled to a 2.5% net smelter royalty (NSR) on all metals for the first 550 000 t of ore processed, and a 2% NSR on all metals over this.
First cash flow from the Baal Gammon mine was expected by April.
Mining activities at Snow Peak’s Surveyor mine were also continuing to ramp-up, with the two projects to be mined concurrently to provide ore feed to the Mt Garnet concentrator.