News: Ark Mines closer to cash flows from Northern Territory gold production

Ark Mines (ASX:AHK) is on the road to becoming a revenue generating company after executing a binding toll treatment agreement with Newmarket Gold (TSX:CRK) for the Mount Porter Project in the Northern Territory.

This is a rarity in this challenging market for junior gold companies.

Ore from the project will be processed at Newmarket’s 2.2 million tonne per annum Union Reefs carbon-in-leach processing mill just 10 kilometres from the project.

Mount Porter has a JORC Resource of 34,200 ounces of gold comprising 355,000 tonnes at 3 grams per tonne.

Under the 18 month agreement, each company will absorb their own costs and expenses from sales of gold.

Cash flows after payment of their agreed costs, expenses and royalties will be split 55% to Ark and 45% to Newmarket.

In July, Newmarket merged with Crocodile Gold, the former owner of Union Reefs carbon-in-leach processing mill.

Ark will now focus on:

- Preparing and submitting a mining management plan (MMP) for the mining of Mount Porter and procure MMP approval as soon as is practicable;
- Procure funding to support the MMP process and related working capital; and
- Negotiate and document satisfactory agreements with contractors to mine Mount Porter and deliver ore to Newmarket Gold for processing.

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