AuKing Mining Ltd (ASX:AKN) earlier this week said it is advancing feasibility work at the Tick Hill Joint Venture as it targets early-stage gold production in 2025. Managing director Paul Williams joined Proactive to discuss.
Highlights
- AuKing Mining Ltd progressing the Tick Hill Joint Venture towards early-stage gold production.
- Historic Tick Hill mine produced 0.5 million ounces at 26 g/t in the early 1990s.
- Remnant tailings and stockpiles present processing opportunities.
- Feasibility study underpinned by 2020 Carnaby Resources report using A$2,350/oz gold price.
- Preliminary Economic Assessment completed earlier this year supports project viability.
- Test work underway on site assessing energy usage, throughput rates, and gold recovery.
- Aim is to commence early-stage production by early next year, subject to acquisition completion.
Significant opportunity
The Tick Hill project centres on the historic Tick Hill mine, located about 120km south of Cloncurry. The mine produced 0.50 million ounces of gold at 26 grams per tonne in the early 1990s.
Williams said the remaining tailings and stockpiles provide a significant opportunity for reprocessing. He added that the company is aiming to begin production early next year, subject to completion of the Cloncurry Project acquisition.
Feasibility and assessment
Williams said feasibility work is based on a 2020 study by Carnaby Resources that identified a viable pathway for processing the tailings. The study used an Australian dollar gold price of 2,350 per ounce, which is less than half of the current price.
The company said a Preliminary Economic Assessment completed earlier this year also supported the economic case for the operation. It added that test work is underway at the site, examining energy usage, throughput rates, and gold recovery.
According to Williams, results from the test work will feed into the feasibility study in the coming weeks and months. He said activities at the site are “certainly accelerating” as the company moves towards its production goal.