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Barra sells underground mine

23rd August 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Junior gold and base metals firm Barra Resources has sold off its Birthday Gift underground mine, at the Burbanks gold project, in Western Australia.

Under the A$2-million deal, Blue Tiger Mining would acquire the Burbanks mining lease with the sole rights to the Birthday Gift underground workings, as well as existing openpits and associated infrastructure.

In addition to the cash consideration, Blue Tiger would also pay Barra a royalty of A$25/oz of gold after the first 6 000 oz of gold has been produced at the project.

Barra would retain full ownership of the historic Main Lode underground workings, some 200 m north of the mine area, where some 146 000 t of ore, grading 18.3 g/t gold has historically been mined.

Barra chairperson Gary Berrell said on Friday that the company would now look to focus its attention on the Main Lode workings, in addition to other prospective areas within the Burbanks tenement.

“As part of our ongoing strategy, the company will be looking at key acquisitions within the Coolgardie region,” said Berrell.

“We will be targeting known gold-bearing areas that require exploratory drilling to bring them up to production status.”

Edited by Creamer Media Reporter

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