Beacon Minerals (ASX:BCN) has made first delivery of ore from its Halleys East gold project to FMR Investments' Greenfields mill in Coolgardie, Western Australia.
Beacon remains on track to commence milling prior to the end of the first quarter this year.
The company is gearing up to accelerate gold mining operations at Halley's East, which could generate significant cashflows.
A pre-feasibility level open pit mine design study for the Halleys East project, compiled by Minecomp, resulted in a probable mining reserve of 58,500 tonnes at 10.6 grams per tonne gold containing 20,000 gold ounces.
The study indicates recovery of 18,430 ounces of gold at a cash operating cost per ounce of $685.
Beacon will pay a royalty to Duketon Consolidated of $36 per ounce recovered for a total all in operating cost of $721 per ounce. An advance of $250,000, representing the first 6,944 ounces, has been paid.
The company is capitalised at $7.5 million with $2.5 million of cash as at 31 December 2014.
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