The agreement is between Spring Hill's two co-venturers, being Thor and Western Desert Resources (ASX: WDR), and Crocodile Cold Corporation (TSX: CRK) subsidiary Crocodile Gold Australian Operations Pty Ltd.
Crocodile Gold operates the Union Reefs gold processing facility which is around 20 kilometres from Spring Hill, and importantly currently has excess processing capacity.
Spring Hill hosts an Indicated Resource of 450,000 ounces of gold within 10.0 million tonnes at 1.40 grams per tonne (g/t) gold which is accessible for open pit mining, and is located 150 kilometres south of Darwin.
The project is served by all-weather access and is in close proximity to the sealed arterial Stuart Highway, north-south rail, gas pipeline and trunk powerlines.
The agreement provides that Thor & WDR, following receipt of all necessary approvals to conduct mining operations at Spring Hill, would haul ore mined from the operation for processing and gold extraction at Crocodile Gold's Union Reefs processing plant, provided:
- The parties can agree acceptable terms, and execute a formal binding agreement setting out the terms upon which the toll treatment may occur.
- The Board of Directors of Crocodile Gold approve the toll treatment.
- Excess processing capacity remains available at the Unions Reefs processing facility.
The parties have agreed to work cooperatively to achieve a mutually beneficial outcome and will at approximately six monthly intervals correspond in reference to progress and issues.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.