Everest Metals (ASX:EMC) is commencing toll processing at Medallion Metals’ (ASX:MM8) Cosmic Boy facility in September.
The company has stockpiled over 130,000 tonnes of material on the run-of-mine (ROM) pad at the Mt Dimer Taipan Gold Project as mining activities advance under a non-dilutive right to mine agreement with MEGA Resources.
Located 150km northwest of Kalgoorlie and 120km northeast of Southern Cross in Western Australia’s Eastern Goldfields region, Mt Dimer represents a key step in EMC’s strategy to transition toward near-term gold production through a low-capex toll treatment mining model.
Executive Chairman and CEO Mark Caruso says the agreement with MEGA has enabled EMC to accelerate development activities at Mt Dimer.
“[The agreement] positions the company to pursue near-term positive cash flow generation subject to gold price,” Caruso says.
“Grade control drilling is [currently] ongoing, allowing a better understanding of total recoverable ounces from the current operation and expanding the known resource to underpin a potential phase two mining pit.”
High-grade drill intercepts continue to demonstrate resource expansion potential, including 7m @ 16.10 grams per tonne gold (Au) from 9m, including 2m @ 43.60g/t Au from 10m.
Other key results include 12m @ 6.20g/t Au from 10m, including 4m @ 15.80g/t Au from 10m; and 6m @ 8.30g/t Au from 17m, including 2m @ 17.80g/t Au from 19m.
The Mt Dimer project comprises a mineral resource estimate of 722,000 tonnes at 2.10g/t Au for 48,545oz Au and 3.84g/t silver (Ag) for 89,011oz Ag, using a cutoff of 1.0g/t Au for resource sitting below the 380m reduced level.
Mineralisation remains open along the northern strike, presenting an opportunity to add gold and silver ounces through targeted follow-up drilling.
Everest Metals is a resource company focused on discovering gold, silver, base metals, and critical minerals in tier one jurisdictions.
Write to Paula Fabe at Mining.com.au
Images: Mining.com.au
