Western Gold Resources (ASX:WGR) has entered into a binding toll milling agreement with Wiluna Mining Corporation, for the treatment of gold bearing ore from the Gold Duke Project in Western Australia.
Under the agreement, which has a 24-month term, ore will be hauled 46km to Wiluna’s Matilda processing plant — a conventional carbon-in-lead facility.
The campaign began on Friday 13 June and has the option to extend for a further six months.
Western Gold is responsible for delivering the ore to Wiluna’s run-of-mine pad, while Wiluna will conduct crushing, processing, and delivery to the refinery.
Managing Director Cullum Winn says this agreement represents a critical step in the path to production.
“With a nearby, established processing facility now in place, and all required approvals and contractors secured, Western Gold Resources is well-positioned to transition to be a gold producer,” Winn says.
Western Gold will retain title to the ore during the process. The company says the processing fee will be determined by reference to a fixed rate per tonne of ore processed, subject to customary uplifts linked to the prevailing gold price and the bond abrasion index of the ore.
Further, Western Gold holds all required mining approvals for stage one of the Gold Duke Project.
Western Gold Resources is focused on developing its Gold Duke Project to move into gold production.
Wiluna Mining Corporation is an Australian gold producer which wholly owns the Wiluna Operations which has 7 million ounces of resources located at the northern end of the Yilgarn Craton.
Write to Aaliyah Rogan at Mining.com.au
Images: Western Gold Resources
