PERTH (miningweekly.com) – Junior Kin Mining has entered into an option agreement with Agnew Gold Mining Company, held by gold miner Gold Fields, to acquire the Lawlers processing facility for A$2.5-million.
The plant, which has been on care and maintenance for 21 months, has a capacity of some 800 000 t/y and includes a significant inventory of spare parts. Inclusive of the purchase will be a laboratory, warehouse and administration buildings, along with plant design and construction drawings, which Kin said would save on engineering cost and time.
The plant will be relocated and upgraded to meet Kin’s processing requirements at its Leonora gold project, in Western Australia.
“The Lawlers processing plant option offers Kin a cost effective and rapid pathway to early gold production. We are planning to optimise the Lawlers plant by carefully evaluating the metallurgical characteristics of the various potential Leonora gold project ore types,” said Kin MD Don Harper.
He noted that following the recent discovery of the Lewis primary ore zone, Kin was confirming the optimal process flowsheet and throughput, given the likely enhancement in grade to be presented to the Cardinia mill.
“Securing the Lawlers processing plant provides a boost to the development of the Leonora gold project and demonstrates the company’s commitment to maximising shareholder value by taking such opportunities to fast-track gold production.”
The purchase agreement requires Kin to make a first payment of A$1.2-million upon settlement, and a further A$1.2-million payment on the first anniversary of the settlement, which is likely to be mid-2018.
Edited by: Creamer Media Reporter
EMAIL THIS ARTICLE SAVE THIS ARTICLE
ARTICLE ENQUIRY
To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
