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Intermin Resources gets ready to haul first gold ore to mill

Intermin is set to become the ASX's newest gold producer.
Intermin Resources gets ready to haul first gold ore to mill
Shares are up 20% in 2017 to $0.12

Intermin Resources (ASX:IRC) is preparing to track its first load of mined gold ore to the Paddington mill from its wholly owned Teal Gold Mine located near Kalgoorlie.

First ore was mined from the northern section of the pit and has been delivered to the run-of-mine (ROM) pad.

The mine is forecast to recover 15,567ounces of gold grading 3.2 g/t and generate $8.6 million in cash.

Jon Price, managing director, commented:

"First gold production at Teal is a significant milestone for the company and opens up a new mining centre in the Western Australian goldfields given the significant exploration success to date.

"We now look forward to continuous production that will generate cash to grow the business through self-funded exploration and development of our mining pipeline."


Mining details

Development of the project commenced in November 2016 with waste overburden removal focussed on the northern section of the pit to access the ore closest to surface and to enable uninterrupted mining during grade control drilling.

In February, the mining fleet moved to the southern section enabling grade control drilling in the north which is now complete.

Trucking to the Paddington mill will begin shortly with ore deliveries to continue for the next 18 weeks with Stage 1 completion expected in July with final ore sales in August this year.

Severe rainfall and flooding occurred in the Goldfields during January and February which impacted access to the mine for more than two weeks.

Although no major damage occurred, considerable clean-up was required on re-entry to the mine site. Ground conditions have improved considerably since this time and mining is progressing well.


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 company also recently agreed to acquire the Anthill gold project located in the Kalgoorlie region.

Intermin has 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

Production of the first gold ore from Teal Stage 1 is a significant step forward and achievement for Intermin.

Furthermore, it will provide the company with sustainable cash flow which will be used to generate news flow through 2017.

Funding will be used to:

- Accelerate brownfields exploration drilling at 100% owned projects Blister Dam, Windanya, Olympia, Anthill extended and Kanowna North;
- For resource extensions at Teal, Peyes Farm and Jacques Find; and
- For infill drilling in preparation for mine development pipeline projects at Goongarrie Lady, Teal Stage 2 and Anthill.

This is in line with the company’s strategy to grow its JORC-compliant resources through infill, extensional and grass roots exploration and complete feasibility studies on core projects to build a sustainable production profile.

Intermin shares are up 20% in 2017 currently priced at $0.12.



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