Metaliko enters JV with KMC

THE BOURSE WHISPERER: Perth-based gold explorer Metaliko Resources has entered into a mining and treatment Joint Venture agreement with Kalgoorlie Mining Company at the former’s Anthill gold project.

Metaliko has defined a gold resource of 160,600 ounces of contained gold at Anthill from five million tonnes at a grade of one gram per tonne gold.
The principle terms of the JV agreement are as follows:

–    Metaliko will complete the mining approval process and prepare the project for mining;

–    KMC will undertake the development, mining, transport and treatment of Anthill on behalf of the JV parties;

–    The JV parties will share the proceeds of gold sales equally after deductions of costs on an open book basis and agreed ore blending and recovery parameters;

–    Annual mining and treatment rates for Anthill ore will be approximately 300,000 tonnes; and

–    Ore treatment from Anthill will commence as soon as practicable after commissioning of the Bullant Plant.

KMC currently operates the Bullant underground mine, which is located six kilometres south of Anthill.


Locations of the Anthill and Bullant projects. Source: Company announcement

Ore from Bullant is presently being treated at the Kanowna Belle plant owned by Barrick Gold.

KMC intends to have its own treatment plant operational at Bullant during the fourth quarter of 2012.

The company also expects the crushing circuit of the plant to be operational by March 2012.

“Metaliko believes the proximity between Bullant, Anthill and other synergies will afford both parties significant benefits and ensure the maximum economic resource recovery from Anthill,” Metaliko Resources said in its ASX announcement.

“Metaliko looks forward to working closely with KMC under this arrangement.”

Metaliko said it is conducting resource drill outs and project development studies on areas of known gold mineralisation, like the Anthill project, that it terms Mine Truck and Treat (MTT) projects.

“In the Eastern Goldfields the existing treatment plant and haul road infrastructure means that even modest resources can have commercial value,” Metaliko explained.

“MTT projects offer the potential for low capital early cash flow that can then enhance the Company’s major exploration initiatives.”

Metaliko is also advancing its Goongarrie MTT and anticipates mining to commence there by third quarter 2012 subject to the company receiving necessary regulatory approvals.