PERTH (miningweekly.com) – ASX-listed junior Bligh Resources has inked a joint venture (JV) agreement over its Bundarra gold project, in Western Australia, which could result in the project moving into production within 18 months.
Under a memorandum of understanding with privately owned Angler Mining, Angler would fund a feasibility study into the Bundarra project and would cover the cost to secure approval for the project, in return for a 50% shareholding in Bundarra.
Angler would also pay a A$25 000 up-front consideration to Bligh and a further A$200 000 by November 14, to allow Bligh to redeem its convertible notes held by Terrain Minerals.
Angler would subscribe for a further A$250 000 worth of Bligh shares through a private placement, some 45 days within signing a JV agreement
In addition, Angler’s wholly-owned subsidiary Contained Gold would fund, build, own and operate the plant that would treat the Bundarra ore.
The proposed plant would have a capacity of between 300 000 t/y and 500 000 t/y and would contain a milling facility that would be used exclusively to treat Bundarra ore, with operating costs during the production period to be jointly funded by the JV partners.
Angler MD Dean O’Keefe on Wednesday said the company’s strategy was to use abundant in-house industry experience to identify and partner with quality asset owners to develop projects.
“We are targeting opportunities where a project is too small or early-stage for the majors to buy or for a smaller company to secure funding, but at the same time, it has the ability to generate strong cash flow if developed and managed well on a smaller scale.”
O’Keefe said the opportunity presented at Bundarra met this criteria.
The project is some 70 km north of Leonora and contains a measured and indicated resource of 244 000 oz of gold, grading 2.1 g/t gold and an inferred resource of 182 000 oz, at 1.78 g/t gold.
Bligh and Angler were hoping to extract ore from the bottom of the existing Celtic, Wonder North and Wonder West pits, while simultaneously testing for resource extensions in the area.