Revamp boosts Hallmark

JUNIOR explorer Hallmark Gold NL is set to benefit financially from major base metal expansion being planned by Joseph Gutnick’s Centaur Mining & Exploration Limited.

Centaur has started a pre-feasibility study on a substantial expansion of its Cawse nickel and cobalt operations which will be based on the resources at Cawse Central, Cawse Extended, Kalpini and Goongarrie prospects.

This study is scheduled for completion by June 2000 with a bankable feasibility study to be delivered by June 2001.

Centaur anticipates an autoclave throughput of about four million tonnes a year to produce 45,000 tonnes per annum of nickel metal and 3000t of cobalt metal or salts.

The Cawse project, located fifty-five kilometres north west of Kalgoorlie, is a lateritic nickel/cobalt project where full scale open pit mining began in April 1998.

The Cawse Extended project is a joint venture between Hallmark Gold NL and Centaur covering thirty-nine square kilometres and located along strike immediately to the north west of the main development at Cawse Central.

In July 1998 Centaur exercised its option to purchase a further 29 per cent of the project by paying Hallmark $7 million, thereby increasing its interest to 80 per cent.

Hallmark’s 20 per cent interest is free-carried to production or, at Hallmark’s election, can be converted to a 2 per cent net smelter return on ore mined from the tenement.

Centaur is required by July 2000 to carry out sufficient exploration to enable a bankable mining feasibility stage to be reached.

Meanwhile, Hallmark is actively involved in seven projects, five of which are joint ventured to other parties.