THE BOURSE WHISPERER: Vector Resources (ASX: VEC) is finalising studies aimed at establishing a toll treatment operation for the company’s Gwendolyn gold project near Southern Cross in Western Australia.
The company is using the studies to assess the technical and financial viability of toll treating ore from the high-grade lodes at Gwendolyn and will include a detailed review of the Gwendolyn resource to ensure the model is optimised for a high-grade toll treatment project.
To this end, Vector said it has held advanced discussions with a nearby processor.
The company said more details regarding the discussions will be disclosed when the findings of the studies are available.
To help fund the studies and other work at Gwendolyn, Vector has announced it will undertake a one-for-two rights issue at 3 cents per share to raise $3.9 million.
“Vector believes that a toll treatment project has the potential to generate far superior returns for shareholders than a conventional project development,” Vector Resources said in its ASX announcement.
“The company believes the financial advantages of this option are also boosted by the ability to target Gwendolyn’s high-grade lodes, which will further reduce operating costs, maximising margins and cash generation.”