Echo Resources announced that it has been granted the Julius Gold Deposit Mining Lease (M53/1099) by the Western Australian Department of Mines and Petroleum (DMP).
The move comes after the company successfully completed various requirements including the signing of the Land Aces Native Title Agreements and State Deed with Tarlka Matuwa Piarku (Aboriginal Corporation) on behalf of the Wiluna Native Title Holders and Echo in Wiluna on 1 December 2016.
“The Company has recently submitted the Julius mining proposal, mine closure plan and clearing permit to the DMP and anticipates receipt of approvals this quarter,” the company told the ASX.
“In addition, the Julius Bankable Feasibility Study is nearing completion and expected to be available for release in the coming weeks.”
Julius is located 70km from the town of Wiluna, and is in close proximity to the operating Jundee Gold Mine (55km) and Wiluna Gold Mines (70km) as well as the Bronzewing Gold Mine (70km), which is currently on care-and-maintenance.
The deposit hosts a gold resource of 197,621 ounces grading 2.08g/t Au with mineralisation remaining open at depth and along strike in all directions. Mineralisation is located near surface and the gold is free milling indicating the strong potential for a low cost, simple mining operation with a fast route to production.
A Scoping Study completed in June 2016 demonstrated a highly profitable mining operation based on the current resource. The study was based on Julius ore being toll-treated by third party within 100km of mine, and Echo has commenced negotiations with a number of potential parties.