WA-based gold company Focus Minerals Ltd is to target the proposed early re-commencement of gold production at Coolgardie in Western Australia's gold fields.
WA-based gold company Focus Minerals Ltd is to target the proposed early re-commencement of gold production at Coolgardie in Western Australia's gold fields.
It will undertake a feasibility study with its joint venture partner, Canadian company Committee Bay Resources Ltd, parallel with its ongoing gold exploration and scoping studies at a tenement holding controlled by the joint venture, which is known as the Redemption joint venture.
The joint venture has total gold resources at Coolgardie of 1.4 million ounces.
The decision to commence the feasibility study on re-commissioning the 1.2mtpa Three Mile Hill processing facility has been made in light of the strong gold price and the potential to generate early cash flow from existing ore stockpiles at Coolgardie, while the joint venture pursues its broader objective of delineating a long-term reserve base to provide a continuous source of ore feed to the plant over a minimum 5 year mine life.
Perth-based Como Engineers Pty Ltd has been commissioned to carry out the feasibility study, which will review a number of proposed modifications and improvements to the existing plant.
The study will include looking into the replacement of the primary crusher, a new gravity circuit and new cyclones.
The initial ore feed will come from existing low-grade stockpiles totaling some 1.6 million tonnes which are located in close proximity to the Three Mile Hill plant.
This material will be used to commission the upgraded plant while further studies are conducted to determine the viability of cut backs on several pits also in close proximity to the processing plant.
Focus Minerals' Managing Director, Mr Peter Williams, said that the production would help to underpin the company's ongoing activities as part of the Redemption Joint Venture with its objective to establish a long-life gold production project at Coolgardie.
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FEASIBILITY STUDY ON EARLY RE-COMMENCEMENT OF GOLD PRODUCTION AT COOLGARDIE STUDY TO EXAMINE UPGRADE OF THREE MILE HILL PLANT TO PROCESS LOW-GRADE STOCKPILES
WA-based gold company Focus Minerals Ltd (ASX: FML) and its joint venture partner, Canadian-based Committee Bay Resources Ltd., today announced the commencement of a feasibility study on the proposed early re-commencement of gold production at Coolgardie in Western Australia through initial treatment of existing low-grade stockpiles.
The feasibility study will be carried out in parallel with the ongoing intensive gold exploration and Scoping Studies being conducted on the major gold deposits within the consolidated 210km2 tenement holding controlled by the Redemption Joint Venture (Focus and Committee Bay). The Joint Venture has total gold resources at Coolgardie of 1.4 million ounces.
The decision to commence the feasibility study on re-commissioning the 1.2mtpa Three Mile Hill processing facility has been made by the Joint Venture in light of the strong gold price environment and the potential to generate early cash flow from existing ore stockpiles at Coolgardie while the Joint Venture continues to pursue its broader objective of delineating a long-term reserve base to provide a continuous source of ore feed to the plant over a minimum 5 year mine life.
Perth-based Como Engineers Pty Ltd has been commissioned to carry out the feasibility study, which will review a number of proposed modifications and improvements to the existing plant to accommodate an initial low-grade ore feed, reduce operating costs and increase the operating efficiency of the plant. The study will include looking into the replacement of the primary crusher, a new gravity circuit and new cyclones.
The initial ore feed will come from existing low-grade stockpiles totaling some 1.6 million tonnes which are located in close proximity to the Three Mile Hill plant. This material will be used to commission the upgraded plant while further studies are conducted to determine the viability of cut backs on several pits also in close proximity to the processing plant. In the mean time work will continue on the development of the Joint Ventures other major deposits such as Dreadnought, Tindals and The Mount.
The Joint Venture has commenced a program of drilling to confirm the tonnage and grade of the stockpiles as part of the feasibility study. .The study and drilling programs are expected to take approximately 10 to 12 weeks to complete. If the study returns a positive outcome production could start as early as September or October.
Focus Minerals' Managing Director, Mr Peter Williams, said that the production would help to underpin the company's ongoing activities as part of the Redemption Joint Venture with its objective to establish a long-life gold production project at Coolgardie.
"The strong increase in the gold price makes a compelling case to commence this feasibility study, with a view to generating early cash flow from the existing low-grade resources," he said. "In the meantime, the Joint Venture will continue to actively pursue its broader development agenda, which is targeting the establishment of a sufficient reserve base to underpin a minimum 5 year mine life at Coolgardie with the Three Mile Hill plant at full capacity."
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BACKGROUND INFORMATION - FOCUS MINERALS LIMITED
Focus Minerals Limited (ASX Ticker: FML) is an Australian-based exploration and development group whose focus is to become a significant gold producer in the Coolgardie region of Western Australia.
Through its Redemption Joint Venture with Canadian-based Matador Exploration Inc, Focus Minerals is the largest landholder in the Coolgardie Gold Belt located in Western Australia, 560km east of Perth and 35km south of the "Super Pit" in Kalgoorlie. Over 2.6 million ounces of gold has been produced from the Coolgardie gold belt alone since 1892.
The Redemption Joint Venture has the mineral rights to more than 210km2 of under-explored tenements including Indicated and Inferred Resources totaling 1.4 million ounces of gold (Indicated Resource of 5.32 million tonnes at 1.8g/t gold and Inferred Resource of 13.7 million tonnes at 2.5g/t gold) as well as the 1.2mtpa Three Mile Hill processing plant, located in one of the world's most significant gold and nickel mining regions.
Matador is sole funding A$8 million of exploration expenditure at Coolgardie in stages over three years with a first-year minimum commitment of A$2.7 million. The overall objective of the Joint Venture is to define sufficient reserves to enable the Three Mile Hill Plant to operate at full capacity with 5 years of scheduled ore treatment, providing cash flow to further explore the surrounding highly prospective gold