Mining to restart at Menzies
PERTH (miningweekly.com) – ASX-listed Kingwest Resources has struck a deal with privately-owned BML Ventures to restart gold production at the Menzies gold project, in Western Australia.
Under the agreement, mining will take place at the Selkirk deposit, which is a small gold project within the greater Menzies project, with a mineral resource estimate of 11 500 oz of gold.
“We are very pleased to complete a mining agreement with BML. To recommence commercial mining at Menzies more than 20 years since opencut mining finished is significant,” said Kingwest CEO Ed Turner.
“This is expected to be the first of a number of mining operations at Menzies and is expected to deliver attractive short- and medium-term cash inflow to Kingwest. Kingwest will continue to focus on the very exciting potential we are seeing at Goongarrie as well as proving up new gold resources at Menzies over time.”
Under the terms of the agreement, BML will cover all capital costs and will be responsible for mining and haulage operation, while processing arrangements will be entered into with a third party.
Net profits from mining the Selkirk deposit will be split, and Kingwest will reimburse the costs of evaluating the Selkirk deposit if the agreement is terminated prior to the start of mining.
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