Perth-based gold and nickel company Focus Minerals Ltd will commence mining at its Coolgardie gold project after securing a development contract with East Perth-based underground mining specialist Barminco, the company has announced.
Perth-based gold and nickel company Focus Minerals Ltd will commence mining at its Coolgardie gold project after securing a development contract with East Perth-based underground mining specialist Barminco, the company has announced.
Focus, with redemption joint venture partner Committee Bay Resources Ltd, signed the agreement for the development of a 400m decline into the Perseverence ore body to facilitate underground exploration and resource definition.
The full text of a Focus announcement is pasted below
WA gold and nickel company Focus Minerals Ltd (ASX: FML) and its Redemption Joint Venture (RJV) partner Canadian-based Committee Bay Resources Ltd (TSXV: CBR) have confirmed plans to commence near-term mining at the Coolgardie Gold Project in Western Australia after securing a development contract with mining services group Barminco Ltd for the high-grade Perseverance deposit.
The RJV and Barminco have signed a Letter of Intent (LOI) for the development of a 400m decline to the Perseverance orebody, to facilitate underground exploration and resource definition programs.
Commencement of the Perseverance decline from fully-permitted underground infrastructure is scheduled for the first week of August. The decline is expected to be completed in October, ahead of the proposed commencement of mining at Perseverance in December 2007.
Preparatory work is underway for the decline, which is an extension of existing underground workings within the Tindals Mining Centre, centrally located within the Coolgardie Gold Project.
The RJV anticipates further development of the decline, to facilitate production, following completion of an advanced Bankable Feasibility Study targeting the priority development of Perseverance for near-term mining.
Historic workings for several other deposits located within the Tindals Mining Centre are also under assessment for potential near-term mining. These include the Cyanide, Countess and Empress ore bodies which, combined with Perseverance, represent a gold inventory currently totaling 208,146 ounces.
An upgraded resource for the key Perseverance deposit is anticipated in the September Quarter 2007, based on recent outstanding results, assays pending for an additional eight completed holes and initial calculations from ongoing drilling programs. Total resources for the Tindals Mining Centre are expected to be boosted further following completion of a resource drilling program scheduled to commence in late August-early September for an extension to the Countess deposit.
The total Tindals inventory and potential mining options resulting from the further assessment of historic mine workings will be incorporated in the Perseverance Bankable Feasibility Study.
Today's announcement follows an agreement finalised by the RJV during July 2007 securing priority toll treatment of up to 480,000tpa of ore at the Greenfields processing facility, which is owned and operated by Barminco subsidiary Higginsville Mining Pty Ltd. The Greenfields plant is centrally located within the Coolgardie Gold Project, on RJV land adjacent to the fully-permitted 1.2mtpa Three Mile Hill facility wholly-owned by the RJV.
"Our early cash-flow options from the Coolgardie Gold Project are now expanding rapidly, as a direct result of our comprehensive assessment and planning work over the past two years," Focus Minerals' Managing Director, Mr Peter Williams, said.
"We are pleased to have secured the development contract with Barminco and look forward to a long-term
Mutually beneficial relationship as we build and develop this project to realise its substantial potential. All the pieces are coming together for the anticipated commencement of mining later this year."
