Orminex and GBF Mining strike a strategic alliance, which provides capital and mining service solutions to suitable near-term production gold projects.
The Company’s strategic partner GBF – an underground mining contractor – has secured the right to enter into a 12-month lease with an attached option to buy 50 per cent of the Burbanks Mill. The binding term sheet is subject to due diligence and final documentation and the Company will continue to update shareholders as the transaction progresses. The Burbanks Mill processed the first campaign from the Company’s Comet Vale project as well as the recent second campaign of ore. The mill has sufficient capacity to process all of the Comet Vale ore once the mine is in full production.
“This acquisition of the mill by our strategic partner further progresses our Mineral Ventures model which aims to control and improve the whole gold production supply chain,” commented Orminex Executive Chairman, Daryl Henthorn.
The mill is located 9 km southeast of Coolgardie in Western Australia and has a processing capacity of approximately 200,000 tonne per year. Any surplus capacity above Comet Vale production will provide a processing option for other Mineral Venture projects in the region. GBF will oversee all operational management of the mill.
After processing a further 5,000 tonnes of ore from the Comet Vale project, the company advised that a second gold pour was completed. This processed ore was a combination of remnant stoping and development ore sourced from the 3.3 and 3.6-levels and the decline development. Grade reconciliation is currently being completed.
“The Comet Vale project has known historical high-grade production and the updated long section shows the potential to extend the current mine plan. The Comet Vale project is a good example of how the Mineral Ventures model, by providing capital and mining services, can bring these stranded gold assets into production,” said Mr Henthorn.