Terrain Minerals Limited (ASX:TMX)
Bundarra will provide all the working capital, with no charge to TMX and the mine profits will be divided 50:50 between TMX and Bundarra.
At Celtic a previous pit design had received statutory approvals to mine, but no operations were carried out. The open pit mine plan has now been reviewed by consultant mining engineers, Holly Mining Pty Ltd and Croeser Pty Ltd and probable reserve of 240,000t @ 2.12g/t gold (16,200 oz) has been confirmed.
At the Great Western deposit, a 2002 mining study identified a profitable open cut mining operation at the then prevailing gold price. A new pit optimisation study, incorporating present day costs and gold price is currently in progress.
Following the completion of the Great Western pit optimisation study a detailed mine plan and schedule will be developed for both deposits. Preparations are in progress to apply for the appropriate statutory mining approvals.
Separate mining studies are also underway on other Terrain held gold deposits.
About Terrain Minerals Limited
Terrain Minerals Limited is engaged in the exploration of gold and other mineral resources. It holds four projects: Bundarra, East Kambalda, Redcastle and Euro. Bundarra is located 70 kilometers north of Leonora. A combined RC and Diamond Drilling program totaling more than 16,000 meters was completed in April 2008. The Bundarra (Celtic) Project, which is 100% owned by Terrain, includes the Black Cat joint venture, and the Great Western prospect. The project area covers 100 square kilometers and encompasses all the major gold prospects in the Bundarra area. The Redcastle Project covers an area of gold workings, with a recorded historical production of 3,000 tons. The Euro project lies immediately to the West of the Euro Mining Centre. The East Kambalda project lies 10 kilometer northeast of Kambalda. The project area covers three north-westerly trending belts of volcanics separated by sediments. Arocom Pty Ltd is the Company’s wholly owned subsidiary.
Terrain Minerals Limited