Laneway on the verge of production
Friday, 19 June 2015
Andrew Duffy
OPERATIONS at the Agate Creek gold project in Queensland are closer to starting up, thanks to a deal its owner LanewayResources has done.
Etheridge Operations' Georgetown plant
Under a binding heads of agreement Etheridge Operations will pay for mining and other costs at the project, with ore trucked 90km north to its Georgetown plant for processing.
An initial 200,000 tonnes of high grade ore at over eight grams per tonne has been earmarked for the plant, which has a capacity of 100,000 tonnes per annum.
Refurbishment work is underway to lift the mill’s grinding rate to 200,000tpa.
“This agreement represents a significant milestone for Laneway by providing the opportunity to mine and process ore from Agate Creek on a commercial scale, with minimal capital requirements, thereby enabling the near term generation of significant cash flow for the company,” Laneway chairman Stephen Bizzell said.
Under the arrangement Etheridge will receive the first 300 ounces through the plant.
Laneway will then earn 60% of the gold produced from the first 80,000t, with its share rising to 70% for the next 120,000t.
The split will apply above a 4gpt head grade, with Etheridge receiving the balance of production.
Looking ahead, mining and haulage is set to start once the Agate Creek licence has been approved by the Queensland government.
Laneway shares were up 25% to A0.5c this afternoon.
