Great Divide Mining (ASX:GDM) has poured first gold at its Challenger gold mine in New South Wales, a crucial step as the ASX-listed mining company “rapidly evolves” into a commercial business with guaranteed cash flow.
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The gold miner has been working hard at Challenger since early May, when it picked up a 15% holding in exchange for a $300,000 injection in exploration.
Hitting this milestone means Great Divide – which was already managing the mine and operations – can (and will) now increase its ownership to 51% under a “second completion” clause boiled into the deal’s paperwork.
“GDM was formed to rapidly evolve into a cash-flow mining business, deriving revenues whilst conserving shareholder capital,” said Justin Haines, the company’s CEO, after the first Challenger gold pour was reported.
“In less than two years, we’ve demonstrated this commitment… [producing] first gold and moving to majority owner of an operating mine and processing facility.”
The ambitious New South Wales-based gold miner doesn’t have plans to slow down its speedy push towards commercial status either, with resource definitions and extension drillings already on the agenda.
“Our focus for the next period is finalising [these July] works and then ramping up to commercial scale production at Challenger,” Mr Haines declared.
Alongside the forward look, Great Divide broke down its process: First pour was achieved using a gravity recovery process, which uses recycled water as the only additive to the milled ore, and without the use of any process chemicals. The miner favoured this direction because it keeps costs “relatively low.”
The process eventually produces gold concentrate that, when compared to the usual doré bars, is not only similarly cheaper but quite a bit simpler.
GDM has been 45cps through to Thursday afternoon; up +2.27% in value.
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