Beacon sells Barlee to Ramelius

THE BOURSE WHISPERER: Ramelius Resources has agreed to the purchase of 80 per cent of a mining lease from Beacon Minerals.

The minnig lease in question contains the Barlee gold project, located 200 kilometres north of Southern Cross in Western Australia.

 

Plan showing location of Lake Barlee Project and the Ramelius processing plants. Source: Company announcement

The consideration to be paid for the project is $4 million in cash and a staged royalty payment.

The purchase is subject to approvals under the ASX Listing Rules (including Beacon shareholder approval), Mining Act approvals and other standard conditions.

According to Ramelius’ announcement to the Australian Securities Exchange, Beacon Minerals has previously announced a resource for the project of 384,000 tonnes at 6 grams per tonne gold for 74,000 ounces of gold.

In addition, Beacon has recently lodged a Mining Proposal for the project.

The Mining Proposal was based on the extraction of gold from the Halleys East located within the Barlee project then trucking it to a nominated third party processing plant for toll treatment.

Key aspects of the Mining Proposal included:

–    An initial mining resource of 172,000 tonnes at 7.5 g/t gold for 42,000 ounces. This initial base mining resource is based on an economic optimisation which takes into account mining (both waste and ore quantities), trucking and processing costs. During the operating mine life these figures may vary depending on the economic drivers at the time;

–    Environmental studies indicated no endangered flora or fauna present in the ML; and

–    No registered Aboriginal heritage sites exist and there are no native claims within the project area.

The Barlee project is located between Ramelius’ Mt Magnet and Burbanks treatment plants.

Once it has completed the acquisition and gained the relevant mining approvals, Ramelius said it anticipates commencing mining at the project in 2012.