GOLD explorer International Goldfields has entered into a heads of agreement with local private company Milspan Holdings to develop the historic Timoni gold mine, with full mining production expected to commence in the 2006-07 financial year.
The agreement relates to a number of exploration lines as well as old remnant ore in the Timoni mine within the company’s 100 per cent owned Mount Ida gold project north of Kalgoorlie.
Subject to the success of a feasibility study, Milspan and IGL will proceed with a joint venture agreement giving Milspan the option to earn an interest of up to 50 per cent by spending up to $4.5 million.
Mines and Resources Australia, a subsidiary of French mining group Cogema, is a 51 per cent partner in the Mt Ida project, spending $7.5 million over the next five years for its stake.
Early evaluations by IGL and Milspan have indicated that, subject to the success of the feasibility study, full mining production could last for 12 months.
The agreement with Milspan includes rights to the Baldock, Whinnen and Meteor resources, which are estimated to contain 100,000 ounces of gold.
Milspan has experience in underground mining in South Africa.
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