AuKing Mining (ASX:AKN) says privately held Orion Resources is taking steps to restart gold production at the Cloncurry Project in northern Queensland.
This news is considered important for AuKing as Mining.com.au previously reported the company has the right to acquire 50% of Orion’s shares by spending $5 million by 30 June 2027.
Orion is currently developing a pathway to re-establish mining and processing operations at Cloncurry, with a primary focus on the Mt Freda deposit.
As part of its restart strategy, Orion has access to a 2023 Scoping Study, which was prepared by an industry-recognised exploration and mining consultant group. The key recommendations of the study include additional resource definition drilling, further metallurgical studies, detailed pit, waste dump, and other infrastructure designs, as well as dilution study and equipment selection.
All of these recommendations will form part of a Feasibility Study which will be completed later this year.
Meanwhile, at the Tick Hill deposit, AuKing plans to conduct several activities alongside Orion and privately held Tick Hill Mining to assess the viability of processing tailings and other ore materials, assess the extent of refurbishment and construction modifications, and begin plant refurbishment and construction.
Upon completion, all three companies will finalise commercial parameters for the processing of Tick Hill’s materials.
AuKing Managing Director Paul Williams says Orion is focused on re-establishing gold production as soon as possible.
“The Orion management team have clearly identified the steps required to re-establish gold production operations at Cloncurry,” Williams says.
“However, importantly, this exercise continues to establish the potential to create significant project value. AuKing has the opportunity to acquire a 50% interest in Orion and share the benefits in this value creation with its shareholders.”
Meanwhile, AuKing is planning the development of a regional project pipeline. This includes presenting possible portfolio solutions including sale of tenure, joint venture non-core ground and strategic alliances with other companies for exploration purposes and toll milling.
The company will specifically focus on the Lorena deposit and Mt Scheelite.
AuKing Mining is a mineral explorer and developer focused on a diverse range of minerals in Western Australia and Tanzania.
Write to Aaliyah Rogan at Mining.com.au
Images: AuKing Mining
