PERTH (miningweekly.com) – Junior AuStar Gold has inked a definitive concentrate sales agreement with New York-based metals trading house MCC Non-Ferrous Trading for the sale of high-grade concentrate product.
AuStar told shareholders that the terms of the agreement remained commercial-in-confidence, but represented realization of a ‘very attractive’ proportion of contained gold at prevailing market prices, without any further costs or administrative obligations on the part of AuStar beyond the point of sale.
“We are pleased to have concluded this agreement, which provides for timely and commercially attractive monetisation of this important component of our production,” said chairperson Philip Amery.
“The AuStar gold team has been making great strides in lifting gold production at Morning Star, within a very disciplined cost control environment, delivering a step-up in revenues over the last few months, despite having this material portion of gold recoveries diverted to stockpile.
“With a regular contribution from concentrate sales, and work on enhancing recoveries nearing completion, among other initiatives, I am confident overall group profitability is now within reach.”
The maiden shipment of concentrate, delivered in late July, comprised 3 234 kg of concentrate with an agreed average assay of some 1 800 g/t gold, and a provision payment of $228 000 was banked.
Further high-grade concentrate of some 1 t from the prior periods, along with concentrate produced in July and August, will be included within the planned August shipment.