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Geko gold sold to Northern Star

6th September 2018

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Newly listed Coolgardie Minerals has entered into an ore sales agreement with gold miner Northern Star Resources over the sale of the first 100 000 t of oxide ore produced from its Geko gold mine, in Western Australia.

Mining at Geko started at the end of August this year, and the project is estimated to host a mineral resource of 136 000 oz, grading 1.6 g/t gold, and a reserve of some 1.5-million tonnes, at an average grade of 1.8 g/t gold.

Coolgardie said on Thursday that the sales agreement with Northern Star is expected to generate more than A$10-million in revenue for the company during the agreement period.

“This agreement represents an opportunity to partner with an emerging junior in the Coolgardie area for the benefit of both parties and is consistent with our regional hub strategy following our acquisition of the South Kalgoorlie operations earlier this year,” said Northern Star CEO Stuart Tonkin.

First ore from the Geko pit is expected in October.

Coolgardie MD Bradd Granville said the agreement was a significant milestone for the company, transitioning Coolgardie from developer to producer, and locking in consistent revenue through the second quarter of 2019.

Edited by Creamer Media Reporter

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