Millennium Minerals' (ASX: MOY) progress at the Nullagine Gold Project in Western Australia has caught the attention of IMC Resources Investments, which has taken up a substantial holding in the company.
IMC has acquired a 9.45% stake in Millennium, with the recent acquisition of 263.1 million shares taking its total holding in the company to 366.1 million shares.
Millennium is on track to begin commissioning of the gold processing plant at the Nullagine project in the September quarter of 2012.
Last month, the company secured A$16.6 million in funding to allow the company to assess a medium term production expansion at Nullagine, which already hosts a Reserve of 741,000 gold ounces.
Millennium estimates that the optimal scale of the Nullagine operations most likely falls within a rate of between 2 and 3 million tonnes annually, which is much higher than the current 1.5 million tonne annual capacity.
The production base target will be 100,000 gold ounces annually over a mine life of eight years or better.
The Nullagine Gold Project hosts 1.33 million gold ounces contained within seven deposits on granted mining leases. Golden Eagle is the biggest deposit, hosting almost two thirds of the resource.
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