KAGARA Zinc Limited is moving ahead swiftly to develop its mineral interests in North Queensland, with the acquisition of Perilya Ltd’s entire interest and rights in the assets of the Mt Garnet and Walsh River joint ventures.
Under the agreement, Kagara will assume a 100 per cent interest in the projects from Perilya, superseding the existing farm-in agreement. Perilya will emerge with an initial 14 per cent stake in Kagara.
During the quarter the Perth-based company completed a reverse circulation and diamond drilling infill and definition program at Mt Garnet.
The outcome of the infill drilling was the confirmation of the continuity of high grade shoots, where the zinc mineralisation at Mt Garnet remains open at depth and down plunge.
The final assay results and analytical data from the infill drilling will be released during August.
Kagara managing director Mark Ashley said once this was incorporated into the database the process of interpretation and orebody modelling would take place.
“This will result in an independently calculated resource during the September quarter,” he said.
The resource will then be the subject of detailed open pit and underground mining studies as part of the feasibility study.
“Metallurgical test work, which is progressing well, is expected to be completed within the next few weeks,” Mr Ashley said.
“A successful pilot plant program has been completed at Ammtec’s facilities in Perth.”
