PepinNini Minerals Ltd has paid $5.5 million for a 51 per cent stake in Eagle Gold Mines Ltd and entered into a farm-in agreement with the company to explore for iron ore in seven Eagle Gold tenements in the Robinson Range area of Western Australia.
Eagle Gold owns the Peak Hill Gold Project including the Fortnum Gold Mine processing plant and a JORC compliant Indicated and Measured Resource of 670,000 ozs of gold with an additional 335,000 ozs classified as Inferred.
The Peak Hill Gold Project is centred on the Fortnum gold mine and processing plant located in the Peak Hill
Gold Field, approximately 850 kms north of Perth.
The project consists of a substantial package of granted mining tenements with high exploration potential covering
an area of approximately 2,500 square kilometres, representing approximately 40 per cent of the Peak Hill Gold Field.
An active exploration program is also planned to investigate some of the 100 priority targets identified as prospective for gold mineralisation.
Eagle Gold intends to restart profitable mining and gold production at Fortnum by recommissioning the 1.2 Mtpa plant to produce 70,000 ozs of gold annually from the existing stockpiles and current Measured Resource by mid 2009.
Administration, exploration and key operational personnel with a thorough understanding of the operation and maintenance of the gold plant and process facilities have been retained and a financial facility is in place to bring the project into production.
PepinNini Minerals chairman Norman Kennedy, and director Mr Chris Lambert will join Eagle Gold chief operating officer Peter Davies and mechanical engineer Bob Markovich as directors of Eagle Gold Ltd.
