Orminex has completed acquisition of 100 per cent of Penny’s Find gold mine for AU$600,000.
|Penny’s Find Gold mine site layout, location of infrastructure and tenements. Image source ©Orminex|
The purchase includes a 100 per cent interest in Mining Tenements M27/156, which hosts the Penny’s Find open pit mine and mineral resource of 248,000 tonnes at 7.04g/t Au for 56,000 and on-site infrastructure.
The terms between the Company and Empire Resources to acquire Penny’s Find include staged cash payments totalling AU$600,000 and a net smelter royalty of 5 per cent payable on the first 50,000 ounces produced from M27/156 and thereafter a 2.5 per cent net smelter royalty for life of mine.
Penny’s Find is located 50 kilometres northeast of Kalgoorlie in Western Australia. It is strategically located within 30 minutes’ drive of Kalgoorlie and approximately 1 hour’s drive from Orminex’s operational mine Comet Vale. Penny’s Find has 56,000 ounces of gold at high grades contained within the previously announced underground mineral resource reported by gold miner Empire Resources.
The underground 2012 JORC compliant mineral resource of 248,000 tonnes at 7.04g/t Au extends from the base of the completed open pit (approximately 85m depth) to at least 250m below surface and remains open at depth. This underground resource only reports fresh mineralisation and is defined by a 1.5g/t Au lower cut-off wireframe model.
“This is a strategic acquisition for Orminex which is located within easy trucking distance of our processing options and our current mining operation at Comet Vale,” said Executive Chairman Daryl Henthorn.
“We will now push forward with plans to get the mine into production as soon as possible.”
The high-grade gold mineralisation at Penny’s Find is hosted by quartz veins at the contact between sediments and basalt. Metallurgical test work has shown fresh mineralisation to be free milling with a high gravity recoverable gold component and a total gold recovery which has historically exceeded 90%.