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Intermin Resources prepares for first ore from Teal gold mine

Mining is now ramping up with two excavators on double shifts.
Intermin Resources prepares for first ore from Teal gold mine
Mining is now ramping up with two excavators on double shifts.

Intermin Resources (ASX:IRC) is expecting ore from the Teal Gold Mine located near Kalgoorlie to be delivered to the Paddington Mill at the end of January.

Mining at Teal is progressing well despite heavy rain in December and waste pre-stripping to the grade control level in northern half of the pit has been completed.

Mining is now ramping up with two excavators on double shifts in both northern and southern sections of the pit.

Grade control drilling has commenced with an updated model expected in 2-3 weeks.

Jon Price, managing director, commented: “Despite some wet weather, it is pleasing to see mining advance and grade control drilling commence paving way for first ore production.

“We expect the project to become cash positive in the March quarter as we advance our second mine at Goongarrie Lady in 2017.”


Background

Intermin has a number of quality gold assets in the world class gold mining region surrounding Kalgoorlie-Boulder in Western Australia.

The company’s flagship projects are the 100% owned Menzies and Teal projects which host significant mineralisation and have the potential to be mined via open cut and underground methods.

The Teal Stage 1 open pit gold mine within the Teal project represents a near term opportunity for gold production.

The company recently completed site mobilisation and commenced pre-strip mining.

The small open pit gold project is capable of producing 15,567 ounces of gold over 9 months for a capital cost of $3.9 million.

Intermin recently signed a binding heads of agreement with Eastern Goldfields Ltd (ASX:EGS) with regard to its Menzies and Goongarrie gold projects.

The company also has interests in a vanadium-molybdenum project in northwest Queensland.


Analysis

All is in place for ore delivery to Paddington at the end of January, which will complete Intermin’s transition to gold producer.

Production after that time is expected to be continuous at circa 30,000-40,000 tonnes per month.

The gold price has recovered recently meaning Intermin will be selling its gold market currently priced at over A$1,600 per ounce which will help the company bank around $8 million this year.

Intermin’s next mine, Goongarrie Lady, is advancing well and an update on the feasibility study progression is expected shortly.

The company’s share price has more than doubled over the past 12 months, currently priced at $0.11.

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