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Norton Gold Fields signs up for Phoenix project

6th August 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Gold miner Norton Gold Fields has thrown in its hat with fellow-listed Phoenix Gold, exercising an option to enter into a mine and ore treatment agreement for Phoenix’s Castle Hill Stage 1 project, in Western Australia.

The two companies and their respective subsidiaries entered into an agreement in 2012, under which Phoenix and its subsidiary prepared separate feasibility studies for the Mick Adams-Kiora and Wadi project, which form part of Castle Hill, using information supplied by Norton as to projected operating and capital costs for mining, hauling and processing ore.

The studies assumed an opencut mining operation, using Norton’s fleet of smaller truck and shovels, with ore trucked through existing haulage roads to Norton’s Paddington mill.

All up-front capital development would also be funded by Norton.

The projects were expected to deliver some 142 800 oz of gold and a total revenue of A$199.9-million.

Phoenix reported this week that in accordance with the agreement, the two companies would now proceed to finalise terms for a formal mine and ore sales agreement, with mining to start within three months of the execution of a formal agreement.

“We are pleased that our ongoing discussions with Norton have culminated in this agreement to mine and treat ore from Castle Hill Stage 1,” Phoenix MD Jon Price said.

“The development of Castle Hill Stage 1 with Norton potentially adds a further A$17.5-million to cash at bank over two years,” he added.

Edited by Creamer Media Reporter

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