Intermin Resources (ASX:IRC) has received $7.7 million in revenue to date from its 100% owned Teal Gold Mine located 11 kilometres north west of Kalgoorlie-Boulder in Western Australia.
Mining has been completed in the northern section of the Teal Stage 1 pit and all ore has been delivered to Paddington Mill and processed.
Under the terms of the mining alliance contract with RM Contracting, RM has now received repayment of its initial capital investment of $2.1 million.
Intermin expects to receive return of its capital investment of $2.1 million followed by the asset recovery charge of $2.15 million in August prior to the profit share component.
Intermin’s share of the final cash flow from the project is estimated at $5-6 million and is expected in the September and December quarters.
Jon Price, managing director, commented:
“It is extremely pleasing to see reconciled ore grades and recoveries exceeding our feasibility study estimates in the north of the pit and provides confidence as we complete mining in the south and progress feasibility work on our future mining projects.
“As Teal continues to deliver significant cash flow to the business, we look forward to seeing the results of the 32,000 metres drilling program now underway and the completion of mine development studies at Goongarrie Lady and future stages at Teal.”
Mine operating better than expected
Ore mining continues in the southern section of the Teal Stage 1 pit on day shift with regular ore batches to be delivered until mine completion scheduled for October 2017.
The Teal Stage 1 operation is on track to produce 15,000 to 16,000 ounces of gold at an all in cost (AIC) estimated at $1,030 to $1,090 per ounce.
Reconciled final grades, recoveries and costs received for the northern section of the Teal pit graded an average of 3.02 g/t gold, 4% above the forecast grade of 2.90 g/t gold.
Gold recoveries to date measure 94%, which exceed the original feasibility study estimates of 90% for oxide ore.
Drilling in progress
Earlier in July, Intermin commenced a 31,600-metre drill program across multiple of its 100% owned gold projects in the Kalgoorlie Region of Western Australia.
The major discovery and resource expansion drill program will include Goongarrie Lady, Anthill, Blister Dam, New Mexico, Baden Powell, Olympia, Windanya, Jacques Find and Peyes Farm.
First results are expected this quarter.
A summary of the 31,600-metre program and which project it is targeting is shown below:
- Goongarrie Lady: 5,070 metres - resource upgrade to “Measured” for feasibility study;
- Anthill: 7,650 metres - validation and extensional upgrade for JORC 2012;
- Blister Dam / New Mexico: 6,700 metres - new discovery drilling to 250 metres depth targeting “Kundana” style open cut and underground mineralisation;
- Baden Powell: 1,100 metres - new resource drilling to upgrade to JORC 2012;
- Olympia / Windanya: 3,150 metres - first pass testing of identified anomalies;
- Jacques Find / Peyes Farm: 1,280 metres - resource extension drilling;
- Regional projects: 1,400 metres - first pass testing of priority targets at Black Flag, Bullabulling and Janet Ivy South; and
- Follow up provision: 5,250 metres - drilling based on initial results received.