PERTH (miningweekly.com) – ASX-listed Bardoc Gold has inked a binding gold concentrate offtake agreement with global minerals trader MRI Trading AG for the concentrate produced at the Bardoc project, in Western Australia.

Bardoc on Thursday said that the offtake agreement would cover some 50% of the forecast life-of-mine gold production at the Bardoc mine, which is expected to start at year three from the operation, representing a further important step towards establishing the company as a significant new midtier Australian gold producer.

MRI was selected following an extensive vetting process from a shortlist of global traders, all of which expressed interest in the gold concentrate, the company added.

CEO Robert Ryan on Thursday said that the negotiation of the offtake agreement represented a significant de-risking milestone in the development of the 100 000 oz/y Bardoc project, providing a solid foundation for the project’s debt funding strategy.

This is a really important milestone which follows an exhaustive offtaker selection process, and we are absolutely delighted to announce MRI as our offtake partner for gold concentrate,” said Ryan.

“This highly detailed and informative process has resulted in very competitive offtake terms with regard to both valuable metal payables and associated costs, as well as favourable payment and shipping terms.

“This process also highlighted the extensive Western Australian experience and global reach of our offtake partner MRI. We are pleased to be partnering with a proven group, who are the world’s largest independent trader of non-ferrous concentrates.”

Ryan said that Bardoc is now focused on completing a definitive feasibility study for its namesake project in the first quarter of next year, and continuing its 40 000 m exploration programme targeting new discoveries.

A prefeasibility study of the Bardoc project has forecast an average annual production of 135 000 oz at an all-in sustaining cost of A$1 220/oz, with the project expected to require a capital investment of A$142.4-million.