Anova Metals (ASX:AWV) is joining the ranks of gold producers after reaching a toll treatment agreement with Veris Gold (OTCQB:YNGFF) to process ore from its Big Springs Gold Project in Nevada.
Shares in the company should trade higher today on the news.
The wholly-owned Big Springs project has a total Resource of 16 million tonnes at 2 grams per tonne gold for 1.03 million ounces of contained gold.
This includes a high grade core of 415,000 ounces at 4.2g/t gold.
Under the agreement, ore from Big Springs will be processed at the Jerritt Canyon Mill and Process facility about 42 kilometres away in batches of about 25,000 short tons.
This removes any requirement for Anova to have its own plant and reduces permitting requirements for its mining operation.
Anova will deliver about 1,000 short tons of ore per day in accordance with an agreed schedule.
It activities at Big Springs are continuing to focus on permitting, completion of the final study work as well as selection of mining contractors in preparation for the commencement of mining.
The company also plans to carry out detailed analysis of the entire exploration data package.
Exploration targets identified will be prioritised and work programs planned for the 2015 field season.
Anova had raised $835,000 during the June Quarter by the issue of 20,875,000 shares at $0.04 each in a placement. It had $1.48 million in cash as of 30 June 2014.
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