Gold ore production has officially commenced at Coolgardie Minerals Limited’s Geko Project, which is located near Coolgardie in Western Australia.
Established in 2010 and ASX-listed in August 2018, Coolgardie Minerals is a gold producer and explorer with over 549 square kilometres of tenements in the gold-producing districts near Coolgardie. As per the announcement this morning, ore has been mined and stockpiled from the Geko Gold Mine with an initial mined grade of 3.5 grams per tonne of gold.
On 6 September 2018, Coolgardie Minerals entered into an Ore Sale Agreement with Northern Star Resources for the sale of up to 100,000 tonnes of oxide ore produced from their Geko mine, at a fixed gold price of AUD$1,650 per ounce.
The ore will be supplied at a minimum grade of 2.75 grams per tonne 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. It is expected the Sale Agreement will generate more than $10 million in revenue for Coolgardie Minerals during the Agreement period.
In a release this morning, Bradd Granville Managing Director of Coolgardie Minerals said this is another milestone for Coolgardie Minerals towards achieving targets in line with the mine plan.
“Revenue will commence next month from our ore sales to Northern Star and the 1.6 million tonne reserve will continue to be mined over the next 13 months,” he said.
Further to this, negotiations are underway for additional toll milling agreements with nearby gold treatment facilities.
More information on the Geko Project can be found here.