PERTH (miningweekly.com) – ASX-listed junior Terramin Australia has struck a deal with Kitticooler Holdings to acquire the Kitticoola gold project, in South Australia.
The copper/gold mine was operational between 1846 and 1869, producing some 7 000 t of ore at an estimated grade of 2.25% copper. The gold potential was realised in 1890, and the mine intermittently produced some 30 000 t of ore, at an average grade of 5.4 g/t gold at that time.
Terramin CEO Richard Taylor said on Wednesday that the company was excited about the opportunity of adding potential production from Kitticoola to its Bird-in-Hand project.
“KItticoola has had only limited modern exploration and presents significant synergies with Terramin’s other assets. If successful, exploration would provide additional feed to processing planned for the Angas facility at Strathalbyn.
“Operating the two projects would potentially increase local employment from the forecast 140 roles already earmarked for Woodside and Strathalbyn,” Taylor said.
The agreement with Kitticooler Holdings provides Terramin with the exploration rights and potential future mining rights over the project, subject to land access fees and a sliding scale royalty paid to Kitticooler.
A 2% net smelter royalty (NSR) will be due on all gold produced from the tenement, while a 2.5% NSR was due if certain government fiscal concessions are available to the project. A 3% NSR will be applicable in either of these cases, if the London Metal Exchange gold price is greater than A$1 800/oz, or a larger than expected resource is defined.