AuKing Mining Ltd is working toward a formal joint venture (JV) agreement for the Tick Hill gold mine with current owner Tick Hill Mining Pty Ltd and Orion Resources Pty Ltd, having signed a term sheet for the JV.
Read: AuKing Mining advances towards 50% stake as Orion moves to restart gold production at Cloncurry
The term sheet sets out a pathway to establishing a processing operation at Tick Hill on a 50/50 basis, with the goal of exploiting the existing tailings stockpiles with the potential to be extended to also restarting the historical open pit mine at Tick Hill.
AKN has also fielded an independent preliminary economic assessment (PEA) report that concluded the proposed tailings retreatment plan for Tick Hill was both technically and financially viable, recommending the project should proceed to a final feasibility study.
Establishing path to early gold production
AuKing’s managing director, Paul Williams, said that the new Tick Hill joint venture is an important step in establishing a clear pathway to early gold production at the Lorena processing plant near Cloncurry.
“As one of the historically highest-grade gold mines in Australia, the opportunity to work in joint venture with the current Tick Hill owners is very compelling for Orion,” Williams said.
“The intended establishment of early cashflows from this joint venture provides Orion with the ability to establish its credentials with the Cloncurry Gold Project and allows for the development of other projects in the portfolio (such as Mt Freda) to be funded for the future.”
Read: AuKing targets Mt Freda drilling to underpin gold mining restart at Cloncurry
The new Tick Hill JV will assess the viability of establishing a processing operation that is based at the Tick Hill site, using a suitable plant relocated from Lorena to create gold-loaded carbon material followed by gold dore production at the existing Lorena elution circuit and gold room facilities.
The three JV partners will immediately begin work on a feasibility study for the proposed development.
In 2020, then-owner of Tick Hill Carnaby Resources Limited released a pre-feasibility study (PFS) and maiden ore reserve confirming a technically and economically viable mining and toll treatment project for Tick Hill, assuming a gold price of A$2,300 per ounce – the current gold price now sits at about A$4,900.
The 2020 PFS noted the tailings pile at Tick Hill has a high gold grade and test work has shown higher recoveries can be achieved by finely grinding and reprocessing the material.
The more recent PEA also highlighted the potential to improve overall economics with the removal of the crown pillar left behind by previous mining within the Tick Hill open pit.