First ounces and revenues from Bullant

Kalgoorlie Mining Company has confirmed delivery of 10,507 dry tonnes of ore from its Bullant gold mine with recovered gold of 1,241 ounces from what is the company’s first shipment of ore to Kanowna Belle.

This represents an average grade of 3.95 grams per tonne for the development ore at a provisional recovery of 93%, with future ore delivery grades expected to increase upon commencement of open stope mining.

At the contracted sale price gross proceeds to the company will be approximately $2.1 Million, before haulage and processing costs.

Under the terms of the Ore Purchase Agreement, Kalgoorlie Mining said a percentage of the provisional net proceeds will be paid to the company within 14 days.

“The balance will be calculated and settled upon the treatment of the gold ore through the Kanowna Belle gold processing facility following final determinations of grade and recoveries,” the company said in an announcement to the ASX.

“The delivery of the first gold ore and subsequent revenue generation is a watershed moment for the company as it strives to build a significant gold business based around Bullant in the north eastern goldfields of Western Australia.”

Kalgoorlie Mining said ore sales to Barrick are expected to continue monthly until the company has successfully commissioned its own gold treatment facility onsite capable of treating +500,000 tonnes per annum.

Further ore deliveries will be made in coming weeks to Kanowna Belle, with Bullant producing ore at approximately 700 tonnes per day.