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Signature signs tailings deal in Ghana

Signature signs tailings deal in Ghana

Photo by Duane Daws

25th November 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed Signature Metals has, through its 70%-held subsidiary Owere Mines, signed a heads of agreement with B&C Gold to procure and process gold-bearing waste tailings in Ghana.

Owere owns the Konongo project, where trial mining activities were abandoned in March, in favour of an aggressive exploration programme to assess a more extensive high-grade refractory sulphide gold ore underground. The company also placed its 320 000 t/y processing plant on care and maintenance.

Signature explained on Monday that the tailings agreement would allow Owere to use the existing plant and equipment to process surface oxide ore, while continuing its exploration work.

Owere would purchase more than one-million tonnes of gold-bearing tailings from B&C, which would be responsible for all the costs and approvals associated with the mining, extraction, blending and delivery of the tailings. Owere would treat and process the tailings and would be responsible for the gold recovery.

The Signature subsidiary would pay B&C an aggregate purchase price based on the amount of dry tonnes delivered, the grade of the tailings, the monthly average gold price and a grade factor.

First production from the tailings activity was expected to be in March next year.

Income from the gold produced under the tailings agreement was expected to sustain exploration activities at Konongo, through to production.

Edited by Creamer Media Reporter

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