Coolgardie Minerals Limited (ASX: CM1) is pleased to announce that mining of Stage Two—representing the higher-grade oxide component of the orebody—has now commenced at its Geko mine.
As announced on 17 December 2018, a revised three-stage mine plan for Geko was developed and executed to optimise future mining. Stage One was completed in late December with ore above the grade of 2.75g/t Au sold to Northern Star as announced on 31 December 2018 and the remainder stockpiled.
The following physicals are expected from the mining of Stage Two:
Ore mined: 260,000 tonnes Average mined grade: 2.23g/t Au Contained gold: 18,640 ozs
The oxide ore mined from Stage Two with a grade above 2.75g/t Au (approximately 50,000 tonnes) will be offered to Northern Star Resources (Northern Star) for sale under the previously announced Ore Sale Agreement.
Ore sale negotiations and toll milling options for the remaining ore on the mined stockpile are underway with other parties.
Stage Three, which will mine the remainder of the orebody (circa 1.3m tonnes at 1.7 g/t Au containing 71,000 ozs) is subject to the successful completion of Stage Two and securing a Toll Milling Agreement acceptable to the company.
