ASX-listed Wiluna Mining Corporation is ticking off milestones after confirming the first shipment of its gold concentrate to its two off-take partners, Polymetal International and Trafigura. The company says the maiden concentrate supply forms part of an ongoing delivery that could significantly spike its revenue and assist in financing its transition towards becoming a top tier gold producer.
Wiluna and PMLT Holdings of Limassol Cyprus, a subsidiary of Polymetal International, have a deal for the delivery of the first 500 wet tonnes of gold concentrate. The gold producer says 14 bags, each weighing roughly 2 wet tonnes, are currently being loaded into 20 containers that will subsequently be shipped from the Port of Fremantle in WA to Vladivostok, Russia.
Departure is expected in a week or so and the concentrate will be shipped on a free on board, or “FOB” basis with payment for the first shipment transpiring within a week of the initial voyage.
According to the Perth-based company, the gold concentrate is bagged and stacked at its namesake project before being placed into shipping containers and transported by road and rail to Fremantle, where it is loaded onto the ship. Wiluna says it has to-date filled 12 of its 20 containers with concentrate and storage units are now in transit to Perth from Wiluna in Western Australia’s Mid West region.
Management says the company’s concentrator has been humming along and has so far churned out around 1,100 bags of concentrate, or 2,150 wet tonnes.
Now that the first delivery and shipment has been confirmed, Wiluna intends to send the concentrate on a regular basis, progressively ramping up the quantity on each excursion.
Wiluna Mining Corporations Executive Chair, Milan Jerkovic said:“The first shipment represents a significant milestone for the Company. The concentrator is performing extremely well and the ramp-up to commercial production is on plan to be at steady-state later this calendar year. We look forward to regular shipments which will greatly increase our revenue and assist in financing the expansion of Wiluna to becoming a top 10 ASX listed gold producer in the next few years”.
News of the shipment follows a busy period for Wiluna after only a few months ago commissioning a sulphide ore concentrate plant at its namesake project in WA’s Goldfields region. The flotation plant's commissioning marks a critical step in its capacity to treat historical tailings and stockpiles totalling about 685,000 ounces of gold.
As the company looks to establish itself as a leading ASX-listed gold producer, the first shipment of its gold concentrate to its two offtake partners will come as a major shot in the arm for Wiluna. With a ramp-up in concentrate expected over the next few months, gold bulls will likely cast a keen eye over the company’s activities.
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