Excelsior eyes early production in WA
PERTH (miningweekly.com) – ASX-listed Excelsior Gold has inked a deal with gold miner Norton Gold Fields, which could see the company start mining operations by the June quarter of this year.
Excelsior on Wednesday announced that it had signed an ore treatment agreement with Norton to accelerate the development and production from its satellite deposits located within the Bardoc South tenement area, in Western Australia.
Under the ore treatment agreement, Norton would process up to 400 000 t of ore from the satellite deposits at its Paddington mill, for a period of six months. Excelsior would be responsible for the mining of the material, while Norton would take responsibility for the ore haulage and milling.
The amount of contained gold derived from the Excelsior ore would be calculated through grade determination and gold recovery procedure prior to blending and processing of the ore at the Paddington mill, and payment for the milling would be based on an open-book, cost-plus structure.
“Signing of the Bardoc South ore treatment agreement signifies a major milestone for the company. It will enable the company to bring production forward by six months and take advantage of the recent rally in the Australian gold price,” said Excelsior MD David Hamlyn.
The Bardoc South tenements, which form part of the greater Kalgoorlie North project, contain 11 defined resources and boast a total indicated and inferred resource of 3.59-million tonnes, grading 1.7 g/t gold for 195 800 oz of gold.
Excelsior would prioritise the mining of selected satellite deposits to maximise return and cash flow.
The company’s focus would also continue to remain on de-risking the Kalgoorlie North project, Hamlyn said, by systematically mining a series of smaller deposits to provide cash flow for the development of the larger Bulletin South mines in 2016.
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