Kalgoorlie Mining Company signs ore agreement for Bullant Gold treatment plant

Kalgoorlie Mining Company (ASX: KMC) has boosted the resource inventory for the company’s flagship Bullant gold project near Kalgoorlie in Western Australia’s Eastern Goldfields through a joint venture agreement.

The company has entered into a mining and treatment joint venture with Metaliko Resources (ASX: MKO) under which Kalgoorlie Mining will undertake and fund the mining, trucking and treatment of ore from Metaliko’s Anthill gold deposit, 6 kilometres north of Bullant.

Production from Anthill will total about 300,000 tonnes per annum. This output will then be processed at Kalgoorlie Mining’s proposed ore processing facility, to be located at the Bullant project.

In addition, the joint venture partners will pursue opportunities to develop and mine ore from Metaliko’s other low capital, early cash flow Mine Truck and Treat projects in the area for processing at the Bullant plant.

All proceeds from gold sales will be shared equally between the two partners.

Kalgoorlie Mining CEO Chris Daws said the deal would allow expansion of the company’s inventory at Bullant.

“We are delighted to have entered in this joint venture agreement with Metaliko. We see this as an excellent, low cost way to further expand the mining inventory at the Bullant project and deliver significant cash flow to the Company for the benefit of our shareholders, and we look forward to working with our joint venture partner to maximise the benefits of the agreement.”

The company has a similar agreement with Phoenix Gold (ASX: PXG), for up to 300,000 tonnes per annum mill feed.

Announced in September this year, the ore treatment memorandum of understanding signed with Phoenix allows for a binding ore treatment agreement to be prepared and executed within 12 months.

Phoenix has a number of advanced mining projects close to the Bullant operations.

Kalgoorlie Mining is planning to build a treatment plant at Bullant that is expected to start operating in the December quarter of 2012. The crushing circuit of the plant is expected to be operational by March 2012.

The company plans to have ore from the Anthill deposit available for processing to coincide with the commencement of operations at the processing facility, while a number of Phoenix’s advanced mining projects are planned on a timetable that would fit in with commissioning of the plant.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/23548/kalgoorlie-mining-company-signs-ore-agreement-for-bullant-gold-treatment-plant-23548.html