Phoenix Gold inks second mill deal

THE BOURSE WHISPERER: Phoenix Gold has executed a Toll Treatment Campaign Agreement with FMR Investments for the treatment of a parcel of Phoenix ore.

The ore will be processed through the latter’s one million tonne per annum Greenfields processing facility located near Coolgardie in Western Australia.

The Greenfields mill is a private toll treatment facility located 25 kilometres south of Phoenix’s southern tenements.

Phoenix said the facility is well serviced by haul roads in all directions.

Under the terms of the agreement, Phoenix will deliver an ore parcel to the mill and will pay a cost plus toll treatment charge on a $A per tonne basis.

The processing circuit will be configured with site personnel under the direction of Phoenix management, which the company said will enable optimal conditions to maximise recoveries and minimise costs.

Phoenix also said that the treatment of the batch of ore will also provide it with valuable metallurgical information and will also allow it to confirm gold recovery values used in project evaluation.

“This agreement allows Phoenix to realise early cash flow from our surface stockpiles that are now economic in the current high gold price environment with minimal haulage required,” Phoenix Gold managing director Jon Price said in the company’s announcement to the Australian Securities Exchange.
 
The agreement with FMR follows the execution by Phoenix of a Memorandum of Understanding with Kalgoorlie Mining Company for the treatment of up to 300,000 tonnes per annum of its ore through the Bullant processing facility.

The MOU was signed earlier this month and contemplates the preparation and execution of a binding agreement within 12 months.

“We are now in a position where we have flexibility and options for the treatment of our ore in the short to medium term as we continue to grow our resource base” Price said.

Phoenix has drafted a long-term agreement with FMR for the treatment of 150,000 tonnes per annum and anticipates this will be executed during the December Quarter.