Ore Sale Agreement executed for Geko Gold Mine
Coolgardie Minerals Limited has entered into an Ore Sale Agreement with Northern Star Resources for the sale of the first 100,000 tonnes of oxide ore produced from its Geko Gold Mine, at a fixed gold price of AUD$1,650 per ounce.
The ore will be supplied at a minimum grade of 2.75 g/t and will be delivered in parcels of 10,000 to 25,000 tonnes over a six month period from 1 October 2018 to 31 March 2019.
Purchase Agreements for each parcel will be established with Northern Star after sampling procedures are completed and the grade has been confirmed and agreed. It is expected the Sale Agreement will generate more than $10 million in revenue for Coolgardie Minerals during the Agreement period.
Bradd Granville Managing Director of Coolgardie Minerals said: “This Agreement is a significant milestone for the company, transitioning us from developer to producer and locking in consistent revenue through to Q2 2019.”
Stuart Tonkin, CEO of Northern Star Resources, said: “This Agreement represents an opportunity to partner with an emerging junior in the Coolgardie area for the benefit of both parties and is consistent with our regional hub strategy following our acquisition of the South Kalgoorlie Operations earlier this year.”
- First ore is planned from the Geko pit in October in line with the Sale Agreement.
- Negotiations are underway for additional milling agreements.
The Geko Gold Mine has a Mineral Reserve* of 1,578,000 tonnes of ore at an average grade of 1.8g/t Au. Other toll milling options are being negotiated with nearby gold mills for the treatment of the remaining tonnes of Geko ore.
The clay content and higher grade nature of the supergene oxide component of the deposit makes the Geko ore suitable for blending with fresh underground ore.