GME Resources Ltd’s (ASX:GME) share price increased after the first batch of ore mined from the Devon Gold project was processed at the Saracen Mineral Holdings’ (ASX:SAR) Carosue Dam gold processing plant.
The batch, comprising 6,400 tonnes mined from the north pit, was delayed for several weeks due to ongoing rain events in the region that resulted in closure of haulage roads.
Head grade assaying from the belt sampling procedure and metallurgical test work to ascertain gold recovery is in progress.
In March, GME Resources had executed a short term financing facility agreement for up to $1.5 million with investment company Zeta Resources Ltd (ASX:ZER).
The financing is aimed at ensuring sufficient working capital during the expansion of open pit operations at the Devon Gold Mine.
Mining is now focused on the main pit. Pre-stripping of waste to the depth of the trial pit (15 metres) is now complete and the main load is exposed.
Ore production is scheduled to increase over the next few months. The mine is expected to produce 63,000 tonnes of ore grading between 5 and 6 grams per tonne by June 30 2016.
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