Great Boulder Resources (ASX:GBR) has signed a memorandum of understanding with Canadian company Monument Mining (TSX-V:MMY) to collaborate on potentially processing ore from the Side Well Gold Project in Western Australia.
As part of the non-binding deal, ore from Side Well will be processed through Monument’s Burnakura Mill, which is located 48km south of Meekatharra in Western Australia.
The mill, which is currently under care and maintenance, previously operated at 260,000 tonnes per year. Monument is now considering restarting operations, with the potential to increase Burnakura’s capacity up to 750,000 tonnes per year.
Both companies are conducting Scoping Studies on their respective operations, the MoU allows Great Boulder and Monument to collaboratively share study outputs enabling optimisation of mining and ore processing.
The MoU also allows collaboration on each company’s area of technical expertise, including Great Boulder’s knowledge of local geology of gold mineralisation, exploring potential and local stakeholder relationships combined with Monument’s expertise in processing, mining, and metallurgy.
In the event Monument uses Burnkura’s milling capacity to toll treat third-party ore sources, the agreement provides pre-emptive processing rights for Great Boulder, subject to availability.
Great Boulder Managing Director Andrew Paterson says this provides a clear path for ore processing as soon as regulatory approvals are in place and Scoping and Feasibility Study is completed.
“I’d like to thank the President and CEO of Monument Mining, Ms Cathy Zhai, for suggesting earlier this year that Great Boulder consider Burnkura as a processing option,” Paterson says.
“Since that first meeting it has been a very simple process to negotiate the MoU to provide a win-win outcome for both companies.”
Monument has an estimated resource in the indicated category of 4.04 million tonnes @ 2.3 grams per tonne gold for 293,000 ounces and in the inferred category of 1.55 million tonnes @ 1.8g/t gold for 88,000 ounces at Burnakura. It also has a historical mineral resource (JORC Resource) of 2.2Mt @ 2.2g/t gold for 153,000 ounces at Gabanintha.
Meanwhile, aircore drilling is continuing at the Eaglehawk prospect, as part of Side Well. The program is designed to define the dacite host unit further north and east of previous drilling.
Ongoing results from this and other recent drilling programs will be released once they become available. Recently announced intercepts include 29m @ 4.79g/t gold from 76m, including a “high-grade” zone of 4m @ 20.5g/t from 92m and 8m @ 5.67g/t gold from 103m, including 3m @ 12.67g/t.
Write to Aaliyah Rogan at Mining.com.au
Images: Great Boulder Resources
