PERTH (miningweekly.com) – Minerals explorer Carbine Resources has moved to acquire the Mount Morgan gold/copper project, in Queensland, by acquiring unlisted Raging Bull Mining.

Raging Bull is currently in an agreement with ASX-listed Norton Gold Fields to acquire the Mount Morgan project.

Under the terms of the new acquisition, Carbine would sole fund the project to the completion of a bankable feasibility study (BFS) to earn an initial 75% interest, and would then execute an option to aquire the remaining 25% through an independent valuation.

Raging Bull would also receive 25-million shares in Carbine on the successful production of 10 000 oz of gold and 5 000 t of copper from Mount Morgan, as well as any other projects acquired from Raging Bull.

Raging Bull’s right-to-mine agreement with Norton currently required the payment of A$100 000 to Norton on the completion of a due diligence, as well as a A$400 000 payment after six months.

Raging Bull was also responsible for completing a BFS on the project, and paying Norton some A$2-million on the completion of a capital raising following the BFS and a final payment of A$13-million through 20% of the annual net earnings from the operating project.

Carbine said on Thursday that the acquisition of Raging Bull formed part of the company’s new cash flow generation strategy, with a focus on using innovative extraction technology to develop assets with low geological risk and near-term production potential.

The Mount Morgan project is covered by 30 mining leases and covers 677.5 ha of land, which are all owned by Norton.

During its operational life, the Mount Morgan mine produced 8.4-million ounces of gold, 400 000 t of copper and 1.2-million ounces of silver. Mining operations were discontinued in 1980, after nearly 100 years of activity.

Carbine noted that the mining leases contained substantial tailings resources with a Joint Ore Reserves Committee-compliant resource of some 8.3-million tonnes, grading 1.23 g/t gold and 0.15% copper for 329 000 oz of gold and 12 300 t of copper.

Carbine had also identified a number of exploration targets at the site.

The junior would now undertake a programme of detailed metallurgical testwork to confirm the viability of the proposed flow sheet to extract copper and gold resources at Mount Morgan.

The company would then launch a BFS to formally assess the viability of restarting tailings operations and complete the processing of all remaining resources.