JOHANNESBURG (miningweekly.com) – ASX-listed Barra Resources has formalised an agreement with FMR Investments to evaluate and potentially start an opencut mining operation at the Burbanks North prospect within Barra’s Burbanks gold project, near Coolgardie.
Under the agreement, FMR and Barra will jointly fund an 80-hole, 2 450 m infill aircore programme at the deposit, seeking to confirm and expand on its existing mineralised zone over a strike length of 200 m, with the aim of defining a mineable resource.
A resource estimation and financial evaluation will follow before electing to proceed to mining development. This work and any future mining activities will provide useful information regarding the along-strike potential of further mineralisation at Burbanks, including the Main Lode deposit in Barra’s reservation area.
The agreement covers the project area and the Burbanks mine access road. Following a review of drilling results, the parties will enter a tribute mining agreement with the intent that FMR will mine and mill the ore.
Profits will be split 35:65 in FMR’s favour, with Barra not being liable for any loss which may result from the mining transport and milling of the ore.
The letter agreement expires within six month, with drilling expected to start this month and a decision on mining to be made in early September.
Barra chairperson Gary Berrell said on Monday this deal was a “great opportunity” for Barra to unlock value from its portfolio of advanced gold projects at relatively lowrisk, drawing upon FMR’s mining capability and access to its nearby Greenfields milling facility.
Edited by: Mariaan Webb
Creamer Media Senior Deputy Editor Online
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