JOHANNESBURG (miningweekly.com) – ASX-listed gold explorer Tyranna Resources on Friday announced the acquisition of the near-producing Eureka project in Kalgoorlie, Western Australia, from TSX-V-listed Central Iron Ore for $3.2-million consisting of cash and shares.
The acquisition of the Eureka project, including the Eureka opencut mine, where production is set to start this month, would provide Tyranna with a potential cash generating asset, which could provide funding for exploration at the Jumbuck gold project in South Australia.
The mine is being developed by a local contractor. Tyranna said that production was scheduled to extend the depth of the current openpit by about 20 m and would be completed during the March 2018 quarter. Once this phase is completed, the company would estimate an updated ore reserve with the aim of restarting mining pending the results of a feasibility study.
Tyranna would receive a royalty equal to 4% of the net smelter return generated from the sale of gold or any other minerals at the Eureka open cut. When production starts, Tyranna would also receive a $250 000 prepayment.
Tyranna said that it would start additional drilling this month, aimed at upgrading the historical resource estimate to a Joint Ore Reserve Committee-compliant estimate.