THE BOURSE WHISPERER: Ord River Resources (ASX: ORD) has entered into a binding ore treatment agreement with Northern Star Resources (ASX: NST) for the K2 Underground Development project.
The K2 project forms part of the broader Plutonic Dome gold project, which is a Farm In/Joint Venture with Dampier Gold (ASX: DAU).
Ord River said the new ore treatment agreement with Northern Star facilitates the processing of ore from K2, which is located 36 kilometres from Northern Star’s Plutonic processing facility.
Access from K2 to the Plutonic facility is via established haul roads.
Northern Star will be paid for the processing services through the provision of gold at the point of refining, a structure Ord River said will assist the company with the management of its cash flow.
“Ord is rapidly progressing towards the development of the K2 Underground project,” Ord River Resources managing director Frank Zhu said in the company’s announcement to the Australian Securities Exchange.
“The signing of the Ore Treatment Agreement with Northern Star represents a significant milestone towards achieving this goal in the near term.
“The coming months for Ord will involve a significant level of activity as we expeditiously work towards commencing production.”