The combined gold projects cover a total area of 1,100 square kilometres near Kalgoorlie-Boulder in the world-class Western Australian goldfields.
Intermin and MacPhersons gold project locations
The merged entity, to be named Horizon Minerals Ltd (subject to Intermin shareholder approval), will have resources totalling 1.15 million ounces of gold and an extensive portfolio of highly prospective growth assets in the WA goldfields.
Importantly, the merger provides a clear pathway to a standalone operation.
The combined asset base will hold 562,000 ounces of gold resources within easy trucking distance of MacPhersons’ 507,000 gold ounces Boorara deposit which has approvals in place for open pit mine development and the construction of a new processing facility.
Boorara gold project, located 10 kilometres east of Kalgoorlie-Boulder, could provide significant baseload feed for a standalone plant within the Boorara tenement area.
MacPhersons has completed over 86,000 metres of drilling to extend the strike length at Boorara to over 2 kilometres and the deposit remains open to the north and at depth.
Trial mining at Boorara in 2016 to test geological modelling, mining methods and metallurgical performance was highly successful and demonstrated improved grades from closer spaced drilling and the presence of a potentially higher grade component within the global resource.
Further infill and extension drilling is planned in 2019 for this very large gold system to test the potential to provide baseload feed for a standalone processing facility.
Intermin’s core Teal, Goongarrie Lady, Binduli, Anthill and Blister Dam gold projects each have the potential to provide +2 g/t gold, oxide and transitional feed amenable to open pit mining to supplement the baseload feed from Boorara.
The recently completed Teal open pit 12 kilometres north of Kalgoorlie-Boulder demonstrated this potential delivering about 22,000 ounces of gold grading 3.2 g/t and 94% gold recovery.
Intermin’s self-funded 55,000 metres resource extension and new discovery drilling program for 2018 was recently completed.
It has delivered resource growth to an estimated 562,000 ounces of gold to date, with further resource updates planned for the December 2018 and March 2019 quarters.
Further high priority drilling targets have been identified and prioritised for testing in 2019, focussed on high-grade open cut and underground ore bodies on major shear zones for transport to the potential Boorara processing facility.
A pipeline of development projects has been identified, including the Goongarrie Lady open pit that has been the subject of a feasibility study which produced results of about 12,000 ounces of gold at 2.9 g/t gold and about $5.7 million in cash flow over the seven months life of mine.
Overall, the combination of the two companies’ projects provides a strong foundation for the merged entity to pursue an accelerated development strategy with the aim of becoming a recognised long life sustainable gold producer.
Indicative timetable for the merger
On successful implementation of the scheme of arrangement, the merged entity plans to embark on a feasibility study in 2019 for an integrated development with a construction decision to follow shortly thereafter.
The likely aim of the study will be to develop an initial minimum four to five year mine plan supporting a standalone CIL processing facility, avoiding the future use of third party toll mills in the area which reduces margin and operating flexibility.
The merged group will hold a significant portfolio of advanced and greenfields exploration assets and is expected to continue to aggressively explore for resource extensions to existing mineralisation, new discoveries and review further acquisitions within the region that can add value and fit with the development strategy.
MacPhersons gold project locations and surrounding infrastructure
Intermin managing director Jon Price said: “The logical consolidation of these complementary assets will provide the critical mass to underpin a larger scale production profile, improved balance sheet and stronger business.
“Combining MacPhersons’ large baseload Boorara deposit with the nearby, higher-grade Intermin projects should enable a more rapid pathway to production with sufficient scale to avoid the need for third party toll milling.”
“We look forward to working with the MacPhersons’ team to complete the transaction and embark on an exciting new chapter for all shareholders and the regional communities in which we operate.”