Australian gold exploration company Excelsior Gold announced that it has received the first part payment from Norton Gold Fields for ore mined from the Kalgoorlie North Gold Project and treated at the company’s Paddington Mill.
“Ore which currently being mined from the Castlereagh and Jackorite open pits is being processed under the long term Ore Treatment Agreement with Norton. The ore processing was commenced ahead of schedule in mid-December and the first batch of Castlereagh ore comprising 10,780 wet tonnes at a mined grade of 1.66g/t Au and a provisional recoverable gold content of 523 ounces was treated by 18 December 2015,” the company said in a statement to the ASX.
“To facilitate the early treatment of Excelsior Gold’s oxide ore through the Paddington Mill, Norton has agreed to immediately pay Excelsior Gold 50% of the recoverable gold value and defer haulage and gold determination procedure which forms an integral part of the Ore Treatment Agreement. In accordance with the understanding Excelsior Gold received an initial payment form Norton of approximately A$385,000 on 24 December 2015.”
The company said that the processing of the second batch of approximately 14,000 tonnes of Castlereagh ore was completed on 28 December, with an interim payment from Norton for this parcel of ore expected next week.
The Kalgoorlie North Gold Project is located 30 to 55 kilometres north of Kalgoorlie in Western Australia’s highly prospective Eastern Goldfields. It comprises 113 km2 of granted mining leases and prospecting licences covering 25km of strike over a well mineralised greenstone sequence known as the Bardoc Tectonic Zone (BTZ).