Production is scheduled to extend the depth of the current open pit by circa 20 metres and will be completed during the March 2018 quarter.
Once this phase of mining is completed, Tyranna will estimate an updated Ore Reserve with the aim of recommencing mining, pending the results of a feasibility study.
Prepayment of net smelter royalty received
Mining activities at Eureka have triggered a payment of $250,000 from the local contractor, being a pre-payment of the 4% net smelter royalty generated from the sale of any gold.
Royalty payments assist in offsetting cash consideration of acquisition price
A component of the consideration for the acquisition includes a royalty receivable from the local contractor to be offset against the cash consideration of the total acquisition.
The total consideration for Eureka was $3.2 million comprised of $1.6 million cash and $1.6 million payable in shares in Tyranna at a deemed price of $0.017 per share.
Drilling to start within the next month leading to mining feasibility study
Tyranna has submitted a program of works for a reverse circulation (RC) drill program for 1,500 metres.
Drilling is expected to commence in December 2017 or January 2018 with the aim of bringing the historic mineral resource in compliance with JORC 2012 standards.
Upon receipt of the drill results, Tyranna will commence mining feasibility study to evaluate the possibility of mining and toll treating to nearby processing mills.