THE BOURSE WHISPERER: KalNorth Gold Mines (ASX: KGM) is to conduct a Scoping Study at the company’s 100 per cent-owned KalNorth Gold Field, located just outside of Kalgoorlie in Western Australia.
The study will look into the possible development of a 0.5 million tonnes per annum to 1 million tonnes per annum modular processing plant to process ore from the KalNorth Gold Field, which comprises the Mt Jewell, Linsday’s, Kalpini and Kurnalpi deposits.
The aim of the study is to determine mining opportunities, initial location of the plant, as well as its economics under various conditions.
The study will also include the possibility of the plant taking in ore from other potential producers.
The company explained it preferred the design of the plant to be of a modular nature due to its initial cost, as well as the ability for it to be moved, if necessary, from one site to another for future projects.
According to KalNorth’s ASX announcement, company chairman Laurence Freedman said the company’s recent foray to haul and toll treat ore offsite proved uneconomic at the current lower gold price.
KalNorth indicated it has been approached by two international groups.
One a US-based investor group proposing a conditional gold production streaming funding and the other an Asian group seeking to invest in the KalNorth Gold Field, subject to satisfactory scoping and feasibility studies.