Octagonal processing gold at Porcupine Flats

THE BOURSE WHISPERER: Octagonal Resources has commenced processing gold-bearing ore from the A1 gold mine at the company’s Porcupine Flat gold processing facility at Maldon in Central Victoria.

 

Location of the A1 gold mine with respect to Maldon. Source: Company announcement

 

The A1 gold mine historically produced more than 450,000 ounces of gold at an average grade of 30 grams per tonne gold and was one of Australia’s longest operating mines having been worked from 1861 through to 1992.

Octagonal entered into an Ore Processing Agreement with A1 Consolidated in February to process gold bearing ore from the A1 Gold Mine at the company’s Porcupine Flat gold processing facility at Maldon.

Under the terms of the Ore Processing Agreement, Octagonal will process of up to 150,000 tonnes of gold bearing ore from the A1 gold mine over a three year period at a rate of 50,000 tonnes per year.

In return for processing gold bearing ore from the A1 gold mine, Octagonal will receive:

–    An ore processing fee that will cover all costs associated with the processing of A1 ore including; labour, consumables, mill maintenance, tailings disposal, and administration; and

–    10 per cent of the gold produced from the A1 gold mine.

Trucking of ore from the A1 mine to Maldon commenced during April and over 5,500 tonnes have been delivered to site for processing.