Advanced gold exploration company Excelsior Gold Limited has announced that it has contracted Hampton Transport Service for open pit mining at the Kalgoorlie North Gold Project in the Eastern Goldfields, Western Australia.
In an ASX Announcement issued yesterday, Excelsior Gold said open pit mining is set to begin on 16 November 2015 at the Castlereagh and Jackorite open pits.
“These two open pits, together with Big Blow South and the large Zoroastrian Central open pit will provide 1.36 million tonnes of ore grading 2.00g/t Au for treatment at the Paddington Mill from December 2015 through to mid-2018,” Excelsior said.
The company has inked an Ore Treatment Agreement with Norton Gold Fields Limited under which Norton will process at least 500,000 tonnes and up to 650,000 tonnes per annum of ore from the Kalgoorlie North Gold Project over a period of five years.
Excelsior has the right to extend that agreement annually for five more years.
“Excelsior Gold’s initial base case mining plan incorporates both open pit and underground mining operations which are capable of supplying ore feet to the Paddington Mill for at least seven years,” the company said in the announcement.
The company also awarded a construction contract to McAleese Resource Pty Ltd in October under which McAleese is to clear a 20 km haul road that connects Excelsior Gold’s open pit deposits to the Paddington Mill.
The work on the road is advancing well, Excelsior said, and it will facilitate mobilisation of Hampton’s mining fleet from Kalgoorlie which is scheduled for this week.