Javelin Minerals (ASX:JAV) has received its final mining approval required to commence mining operations at the Eureka Gold Project in Western Australia.
The company received approval of its mining development and closure proposal from the Western Australian Department of Mines, Petroleum and Exploration (DMPE), placing the project as “shovel ready”.
All approvals are now in place, including clearing and water permits, a JORC-compliant resource estimate, and a mine plan, allowing the company to commence production.
Eureka hosts an indicated resource of 1.36 million tonnes (Mt) @ 1.8 grams per tonne for 78,678 ounces of gold (Au).
The indicated resource sits within a global estimate of 2.04Mt @ 1.69g/t Au for 110,687 ounces.
Recent drilling conducted at Eureka returned ‘significant’ intersections, including 4m @ 2.7g/t Au from 91m, 4m @ 2.3g/t Au from 52m, 5m @ 2.1g/t Au from 45m, and 10m @ 1.2g/t Au from 85m.
Drilling confirmed the continuity of shallow mineralisation while extending ‘high-grade’ mineralisation along strike.
The program focused predominantly on areas of lower drill coverage within 80m of surface. The campaign confirmed the mineralised zones within the planned Eureka open pit cutback.
Javelin intends to complete two diamond-tail drill holes to test the northern extensions of the ‘high-grade’ mineralisation down-plunge. The main Eureka orebody remains open in the north-plunging orientation.
Javelin is under a right to mine agreement with MEGA Resources to provide geological, engineering, mining, and transport services at the project.
Subject to execution of an ore purchase agreement to process Eureka ore, MEGA will provide $25 million to fully fund the project into production and positive cashflow.
MEGA will begin making upfront payments of $250,000 per month as a prepayment from Javelin’s profit share following the start of processing Eureka ore.
Javelin Minerals is currently undergoing discussions with nearby mill operators to begin Eureka ore processing and holds a market capitalisation of $21.67 million.
The company is focused on creating “rapid value” through near-term gold production and brownfields exploration in Western Australia, with a project portfolio comprising the Eureka Gold Project, the Coogee Gold Project, and the Central Yilgarn Gold Project.
Write to Maddison Elliott at Mining.com.au
Images: Javelin Minerals
