Tyranna Resources has secured a mandate to progress with its plan to unlock early cash flow from its Eureka gold project near Kalgoorlie after defeating an attempt by major shareholder Central Iron Ore to replace the current management. The early mining opportunity is expected to generate a positive cash flow of about $2.6 million that the company will use to accelerate exploration at the project.
Tyranna Resources has secured a mandate to progress with its plan to unlock early cash flow from its Eureka gold project near Kalgoorlie after defeating an attempt to replace the current management.
Central Iron Ore, which held 11.64% of the company’s issued share capital through its wholly-owned subsidiary Central West Resources, had sought to replace managing director Bruno Seneque, chairman Geoffrey Clifford and non-executive director Nick Revell with its appointees.
However, shareholders voted against the resolutions proposed by Central Iron at an extraordinary general meeting held on 27 May 2019.
With the attempted coup out of the way, Tyranna can now focus on its early stage mining operation at Eureka.
The plan envisages mining about 60,500 tonnes of ore via shallow open pit mining and an adit into the north pit wall to produce 4,057 ounces of gold at a diluted grade of 2.1 grams per tonne over two months.
At a gold price of $1800 per ounce and capital costs of just between $600,000 and $700,000, the operation is expected to generate a positive cash flow of about $2.6 million.
The funds will be then pumped back into further exploration to test a southerly extension of the Eureka mine workings and potential extensions at depth.
Eureka is located 50km north of Kalgoorlie and hosts a JORC-compliant mineral resource estimate of 762,000 tonnes grading 1.8 g/t gold for 43,100 ounces of contained gold based purely on exploration in the immediate pit area.
The open cut was operated on a small scale many years ago though previous mining only exploited near-surface ores without proper evaluation of the underground potential, due to the low prevailing gold prices at the time.