Carbine Resources Limited has announced the execution of an earn-in agreement with Raging Bull Mining Pty Ltd., a wholly owned subsidiary of Raging Bull.
According to the media release by Carbine Resources, the agreement will allow the company to acquire a 100% interest in the Mount Morgan mine and 1 Mtpa Kundana CIP Plant (Project), to have the first right to earn-in to a pipeline of projects under development by Raging Bull and access additional technical and commercial resources for the development of current and future projects.
Carbine will acquire the Project through the acquisition of Raging Bull Metals Pty Ltd (RBM), which currently holds an agreement with Norton Gold Fields Limited to acquire the project.
The acquisition is part of Carbine’s new cash flow generation strategy which focuses of utilization of innovative extraction technology in the development of assets with low geological risk and near term production potential.
The agreement will enable Carbine to leverage Raging Bull’s technical expertise, technology assets ad networks in the development of the Project and other targeted assets.
Carbine Resources has carried out extensive resource definition, metallurgical testing, environmental studies and mine planning on the remaining resources at Mount Morgan.
Preliminary testing on a new flowsheet developed by Raging Bull for the Mount Morgan tailings has shown the flowsheet can reduce operating costs associated with excess cyanide consumption in the gold circuit; improve gold recoveries by reducing competition with copper in the gold circuit; provide an additional revenue stream via copper production from operations and eliminate acid forming materials within the existing tailings resources.
Carbine will immediately undertake a program of detailed metallurgical test work to confirm the viability of the proposed flow sheet for extraction of both copper and gold resources at Mount Morgan. In addition, the company will also work closely with Norton, the Department for Natural Resources and Mines (DNRM) and other stakeholders to ensure the Project meets commodity, state and corporate objectives during the development process.
Carbine will also acquire all existing plant and equipment associated with the Kundana CIP plant as part of the agreement with Norton. The plant has been decommissioned by Norton, with approximately $3.5 million spent on a complete renovation for use at Mount Morgan. The plant provides Carbine with an opportunity to substantially reduce capital costs associated with future construction of processing facilities at the Mount Morgan mine.
In addition to the acquisitions of Mount Morgan and the Kundana plant, Carbine will also acquire a 100% interest in Norton’s Many Peaks Copper & Gold exploration tenements.