Torian Resources is set to dip its toe into the mining contracting business with the gold explorer exercising the option to buy both the Carhill Contracting and the pastoral station where the business is operated from. The company’s purchase includes a contracting business and the Tarmoola station, which covers more than 1,700 square kilometres north of Leonora. The station will now also be used by Torian as a logistical base to fast-track exploration across the company’s flagship Mt Stirling gold project.
The company’s acquisition hands it a strategic position in the North Eastern Goldfields, with the station being more than 50 per cent covered by current mining tenure. The tenure includes Red 5’s multi-million-ounce King of the Hills gold mine and Round Oaks Bentley copper-zinc operations, both of which are also clients of the Carhill Contracting business.
Carhill Contracting owns more than $875,000 of plant and equipment including loaders, diggers, haul trucks and graders. It is currently undertaking contracts with a host of miners and explorers in the Leonora region including St Barbara, Red 5, Round Oak and Torian itself.
Carhill utilises the Tarmoola station as its base, with the pastoral property also still functioning as a working cattle property. The station boasts good grazing ground, 34 solar-powered livestock wells and over 1,100 head of cattle. Interestingly, the property also generates more than $360,000 in carbon credits per annum, which will likely add a welcome boost to the company’s bottom line and “green” credentials.
Tarmoola also hosts a 20-person exploration and contractors camp which Torian will now use to expedite exploration at its Mt Stirling project, which sits in the south of the station holding.
Torian Executive Director, Peretz Schapiro said: “Our recent site visit has confirmed our convictions that moving ahead with purchasing the station fits very nicely with our long-term strategic goal of solidifying our land holding in the Leonora region as we progress with further exploration of the Mt Stirling Gold Project and potential mining operations. As owners of the pastoral lease we will be able to reduce our discovery cost per ounce and ensure that the process of obtaining permits for our exploration and potential future mining activities, is as seamless as possible.”
“There are substantial access benefits by holding pastoral leases. Owning and controlling the pastoral lease on which the majority of our flagship project lies, in addition to the accommodation facilities and earth moving equipment, gives us enormous flexibility when it comes to our future exploration plans, as we continue to put runs on the board, prove up and expand on multiple targets and deposits to deliver JORC resources in the region.”
The Mt Stirling project lies around 35km north-west of Leonora in the North Eastern Goldfield’s of Western Australia. The company’s tenure covers over 20km of strike and surrounds the gold discoveries at Mt Clifford and Cerebus. Torian is also having considerable success in the region having already defined close to 1 million tonnes of ore within its own tenure, including the 727,000 tonne Mt Stirling discovery, which grades at 1.45 grams per tonne gold and contains around 33,900 ounces of the precious metal.
The company has designed over 50,000 metres of drilling across the Mt Stirling project. It is continuing to expand its resource inventory in the region and testing a growing number of discoveries within its tenure including Stirling Well and the historical high-grade Diorite King mine.
Torian is set to pay $3 million for a 45-year lease over the Tarmoola station whilst adding Carhill Contracting to the package will cost the explorer a further $1 million. However, with Carhill currently holding close to $1 million in plant and equipment and boasting contracts of around $1 million per annum, the Tarmoola-Carhill acquisition shouldn’t take too long to pay for itself.
The company is also currently spinning out its ground holdings south of Kalgoorlie, with its Mt Monger tenure forming the centrepiece of the soon to be completed initial public offering for Monger Gold.
Torian also has a joint-venture on its books with Zuleika Gold over an extensive ground holding north-west of Kalgoorlie, giving the company exposure to three high-profile gold producing regions in WA.
With the company buying up key infrastructure at Leonora and exploring a wealth of targets in the region, Torian looks set to put down roots at Tarmoola and will be hoping to repeat the successes of other explorers in the region. Given the extent of landholding Torian now commands, it may well find its own version of the Thunderbox, King of the Hills or even perhaps the Gwalia mine.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
