Nagambie Resources Ltd (ASX:NAG) and Golden Camel Mining (GCM) Pty Ltd have received a Planning Permit from the local authority to construct and operate a 180,000 tonnes per annum gold toll treatment plant at the Nagambie Mine in Victoria.
The permit from Strathbogie Shire covers the removal of vegetation and the construction, operation, tailings disposal and rehabilitation of the 180,000 tonnes per annum plant.
NRL acquired the farm immediately to the south of the East Pit at the Nagambie Mine for $905,000 in July this year and this comprises about 228.6 hectares of land, which is partially covered by the company’s mining licence MIN 5412.
Complements plans
This purchase supports and complements the group’s existing announced plans for the Nagambie Mine site and several future projects under consideration.
The ASX-listed company is methodically exploring Fosterville-style, structural-controlled, high-grade sulphide-gold underground deposits within 3,600 square kilometres of Waranga Domain tenements.
The company is also investigating a process to recover residual gold from the 1990s heap leach pad using naturally occurring bacteria.
Construction plans
Golden Camel plans to start the construction of the facility utilising selected existing plant in Australia in the December quarter of 2021 and expects it to be completed in the June quarter of 2022.
According to NRL, the construction of underwater storage of sulphidic excavation material (PASS) in the two legacy gold pits at Nagambie Mine is an excellent environmental fit with a major infrastructure project for Melbourne such as the North-East Link.
Terms of agreement
NRL and Golden Camel are preparing detailed documentation of a 50:50 joint venture agreement including the financing of the initial plant and the management, construction, operations and progressive rehabilitation of the project.
The key terms of the joint-venture agreement include:
- Golden Camel will pay for all the construction and commissioning costs and pay for the first fill of all consumables;
- Future gold recovery improvements will be paid for 50:50 by NRL and Golden Camel;
- Golden Camel will be the initial manager of the joint venture with both companies equally represented on the committee. There will not be an overriding percentage management fee;
- All rehabilitation costs will be paid for by the joint venture;
- Initial ore treated will be trucked from GCM’s Golden Camel mine; and
- If NRL proceeds to recover residual gold from the historic Nagambie Mine Heap Leach Pad using bacterial solutions, the JV will periodically treat the pregnant solution and pour gold bars to its account. NRL will pay a fee based on the relevant costs incurred by the JV.