Centius acquires gold mine

THE BOURSE WHISPERER: Centius Gold has acquired 100 per cent ownership of the high-grade Dittmer gold mine located near Proserpine in Queensland.

The acquisition is subject to Due Diligence for an acquisition price of $600,000, which will be funded by Centius from existing resources.

The agreement provides for the acquisition of 100% of two Dittmer Mining Leases with Loch Neigh Pty Ltd, as well as a surrounding Exploration Permit.

Centius said it plans to commence gold production at Dittmer next year, which basically adds a near term production asset to the company’s portfolio, which consists of gold and base metals interests located elsewhere in Queensland and in New South Wales.

The company said it already has knowledge of sufficient ore to cater for a 10 year to 16 year mine life.

The immediate term program following the completion of due diligence and the acquisition will see Centius complete testing of key data and work required to enable it to carry out the calculation of a JORC indicated reserve.

This in turn will allow it to determine the prioritisation of project development options, with a focus on near-term production.

Centius will fund the initial mine development from existing cash reserves, and is confident that it will not need to go to the market and rattle the tin for funding for this development.

The company proposes to commence with a small operation that will generate an immediate cash flow from the recoverable free gold.

“The acquisition is an extremely compelling one for Centius shareholders as it is attractively priced and will allow the company to fast track its plans for gold production,” Centius Gold managing director John Slade said in the company’s announcement to the Australian Securities Exchange.

“Our other projects will continue to be developed.

“We are confident that there is sufficient gold at our Croydon gold project to allow production and will continue to work towards this objective.”