11/07/2014 - 14:07

Phoenix to buy SIGM plant

11/07/2014 - 14:07

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Kalgoorlie-based Phoenix Gold has agreed to purchase St Ives Gold Mining Company’s heap leach processing plant near Kambalda for $2 million.

Phoenix to buy SIGM plant
Phoenix managing director Jon Price.

Kalgoorlie-based Phoenix Gold has agreed to purchase St Ives Gold Mining's heap leach processing plant near Kambalda for $2 million.

Phoenix said the acquisition of the 2 million tonnes per annum plant will enable the treatment of lower grade iron ore mined from Castle Hill.

“This processing pathway will compliment the milling of higher grade material and provide an additional source of cash flow generation,” Phoenix said in a statement. 

The acquisition includes all fix plant infrastructure and considerable spares held.

Under the agreement, Phoenix said it would put a $200,000 deposit down on the sale.

“Heap leaching has always been a key part of our production strategy and to have secured a fit for purpose stand-alone processing plant of this quality at this price is a fantastic result for the business,” Phoenix managing director Jonathan Price said. 

“With the preliminary engineering study completed, the next step is to complete the detailed relocation and refurbishment engineering study and update the heap leach feasibility study which will complement the staged development plan and joint venture opportunities with Norton Gold Fields.

Phoenix said it expects to complete a formal sale agreement with SIGM in September.

Phoneix last traded at 14.5 cents per share at 2pm. 

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