AuKing Mining Ltd (ASX:AKN) is making good progress at the Tick Hill Joint Venture, advancing feasibility work to support early-stage gold production at the historic Tick Hill mine in northwest Queensland.
Key developments include:
- The execution of a joint venture term sheet with Orion Resources Pty Ltd and Tick Hill Mining Pty Ltd to establish a processing operation targeting existing gold tailings;
- A feasibility study underpinned by a 2020 Pre-Feasibility Study (PFS) demonstrating technical viability;
- A favourable independent Preliminary Economic Assessment (PEA) confirming both technical and financial viability;
- Active testwork underway to optimise gold recovery and inform engineering assessments.
Managing director Paul Williams said the partnership could fast-track cashflow while strengthening AuKing’s Cloncurry Gold Project credentials.
“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 AuKing,” Williams said. “The intended establishment of early cashflows from this joint venture provides AuKing 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.”
Joint venture aims for tailings reprocessing at high-grade historic gold mine
The Tick Hill Joint Venture was established via a term sheet executed on March 31, 2025 between AuKing, Orion, and Tick Hill Mining Pty Ltd.
The agreement focuses on developing a reprocessing operation for the existing tailings stockpiles at the site, located 120 kilometres southeast of Mount Isa.
Tick Hill is recognised as one of Australia’s highest-grade gold mines, having produced 534,000 ounces from 665,000 tonnes of ore at an average grade of 25 grams per tonne (g/t) gold between 1991 and 1994.
Feasibility study builds on 2020 PFS and robust historical data
The current feasibility work leverages a Pre-Feasibility Study released in June 2020 by then-owner Carnaby Resources Ltd. That study confirmed the viability of a mining and toll treatment operation targeting the tailings and near-surface materials.
Significantly, the 2020 PFS used a conservative gold price assumption of A$2,300 per ounce — less than half the current spot price — suggesting stronger project economics under present market conditions.
AuKing commissioned an independent Preliminary Economic Assessment earlier this year to validate the 2020 PFS findings. The PEA supported the technical and financial case for tailings reprocessing and recommended progression to full feasibility.
Key focus areas for further assessment include:
- Optimal processing solutions using facilities at Lorena and Tick Hill;
- Transport logistics between both sites;
- Costings for consumables;
- Workforce resourcing; and
- Regulatory and approval requirements.
The PEA also identified additional opportunities, including untapped lower-grade tailings and the potential for higher gold recoveries than initially modelled. It recommended evaluating the re-establishment of open-pit mining at Tick Hill to access higher-grade ore, albeit requiring more substantial investment.
Testwork underway to guide engineering and design
Trial testwork is currently being conducted at Tick Hill to generate technical data on grind size, energy usage, feed rates and metallurgical recovery.
These inputs will form a key component of the JV’s feasibility study and final investment decision.