Millennium Minerals consolidates control over recently optimised WA gold mine

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Nullagine Deposit Location Plan over regional geology showing acquired tenements in blue Image credit: millenniumminerals.com.au

Western Australia gold producer Millennium Minerals has announced that it has completed the acquisition of RSI (WA Gold) Pty Ltd.’s interests in 16 tenements in the Nullagine Gold Project in the Pilbara region in WA.

Nullagine Deposit Location Plan over regional geology showing acquired tenements in blue
Image credit: millenniumminerals.com.au

“Millennium will pay RSI a gross royalty of 6.44 per cent on the first 20,000 ounces of gold produced from these tenements and a gross royalty of 1.5 per cent on all minerals produced thereafter,” the company said in an ASX Announcement issued last Friday.

Millennium said that the acquisition simplifies the ownership structure of the project, bringing it into line with its 100% ownership of other tenements at the 640-square-kilometre Nullagine site.

“The acquisition is expected to be earnings accretive to Millennium and will remove the administrative overhead costs and management time associated with managing a joint venture,” the company said.

The Nullagine Project comprises multiple deposits on granted mining leases. The largest deposit is Golden Eagle which is located approximately 10 km south of the Nullagine Township. The project also hosts a 1.5 Mtpa CIL gold processing facility which was commissioned in August 2012.

Commercial gold production at the Nullagine Gold Project was declared in January 2013.