Veris Gold secures toll milling agreement for Nevada project
TORONTO (miningweekly.com) – Nevada project developer Veris Gold has secured a toll milling agreement with fellow Nevada miner Atna Resources to process ore from Atna’s Pinson mine at the Jerritt Canyon mill, located in Elko county.
TSX-listed Veris Gold on Wednesday said under the one-year term of the agreement, Atna would pay Veris a toll milling fee that would be adjusted on a quarterly basis, to reflect any changes to input costs associated with processing the ore.
The toll milling agreement was structured so that all doré produced would remain the property of Atna throughout the process and the associated toll-milling fee charged to each ton would be treated as a credit to Jerritt Canyon operating costs.
“This agreement is a win-win situation with our gold-producing neighbour in Nevada. Processing third-party ores makes excellent use of the upcoming excess capacity at the Jerritt Canyon mill as we gradually phase out the low-grade stockpile ore,” Veris co-CEO and COO Randy Reichert said.
He added this provided the company with revenue that would increase its positive cash flow from mining and processing operations. “Jerritt Canyon’s operations are largely fixed-cost, so making use of the additional capacity will bring down the operation’s cost per ounce considerably.”
Toll milling was expected to start early in the second quarter, and low-grade stockpiles would be used to provide 100% of the necessary mill feed.
"This agreement provides additional processing flexibility with a smaller lot-size for Pinson and an outlet for our oxide-sulphide transition ores,” Atna CEO James Hesketh said.
Veris said it was evaluating other ores and concentrates to determine which were best suited to being processed with the company’s surplus processing capabilities.
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