Bradd Granville

Coolgardie Minerals has signed off on an ore sales agreement that will see the company deliver up to 100,000 tonnes of ore in small parcels to processing facilities at Northern Star Resources’ South Kalgoorlie operations for toll treating over a six-month period, beginning in October. The agreement locks in a gold price of A$1,650 per ounce, potentially generating more than A$10m in revenue for Coolgardie from the agreement.

Coolgardie Minerals has swung into production near Coolgardie just a couple of months after listing on the ASX. First ores were extracted at a respectable gold grade of 3.5 grams per tonne from the company’s Geko gold mine. Mined ore will be stockpiled and then sold to Northern Star’s South Kalgoorlie operation at AUD$1650 an ounce where it will be processed.

Coolgardie Minerals’ first near-mine exploration hole has intersected a new gold mineralised zone at its operating Geko gold mine near Kalgoorlie, confirming the company’s new structural interpretation of the Geko project. The 10m intersection has a grade of 2.62g/t gold, which is higher than the average grade of 1.8g/t gold within the pit reserve. This indicates that the grade of the orebody may increase at depth and to the west.

Coolgardie Minerals has received its first revenue cheque of $1.68 million from the sale of high grade oxide ore to Northern Star Resources from its Geko pit near Bullabulling in WA. The company is carrying out further grade control drilling to determine the extent of the remaining supergene zone in the western part of the pit and to define the Stage 2 oxide ore zones for mining this month.

Coolgardie Minerals has started mining the higher grade oxide ore at its Geko pit near Bullabulling in WA under the second stage of its three stage mine plan. About 260,000 tonnes of ore at an average grade of 2.23g/t gold will be mined during this stage. Ore with a grade exceeding 2.75g/t gold will be offered to Northern Star Resources under the existing ore sale agreement.