Metaliko Resources (ASX: MKO) is on track to achieve early cashflows from the Anthill Gold Project under a new Mining and Treatment joint venture agreement with Kalgoorlie Mining Company (ASX: KMC).
The two companies have reached an agreement that takes advantage of the synergies between Metaliko’s Anthill and Kalgoorlie Mining’s Bullant projects, located just 6 kilometres apart in Western Australia’s Eastern Goldfields region.
Under the terms of the joint venture, Metaliko will complete the mining approval process for Anthill and prepare the project for mining, following which Kalgoorlie Mining will undertake the development, mining, transport and treatment of Anthill.
Proceeds of gold sales will be shared equally between the two companies
Metaliko has defined a JORC Resource of 5 million tonnes at 1 gram per tonne (g/t) gold for 160,600 ounces of gold at Anthill. Annual mining and treatment rates for Anthill ore will be approximately 300,000 tonnes.
Kalgoorlie Mining plans to have its own treatment plant operational at Bullant during the December quarter of 2012. A crushing plant is expected to be in operation by March 2012.
Ore treatment from Anthill will commence as soon as practicable after commissioning of the Bullant Plant.
The proximity between Bullant and Anthill will afford both companies significant benefits and ensure maximum economic resource recovery from Anthill.
It is also intended that the joint venture will pursue opportunities to develop and mine some of Metaliko's other projects for processing at the Bullant plant.
Metaliko is conducting resource drill outs and project development studies on a number of areas of known gold mineralisation, like Anthill, that it terms “mine truck and treat” projects.
These projects offer the potential for low capital early cash flows that can enhance the company’s major exploration initiatives.