Jindalee Resources Ltd (ASX:JRL) has reached an agreement with Torque Metals Ltd whereby Torque can earn an 80% interest in three exploration licences on the eastern edge of Jindalee’s Widgiemooltha Project in Western Australia’s Eastern Goldfields.
Torque, an unlisted public company led by long-time gold geologist Ian Finch, is acquiring the Paris gold mining centre.
Gold was first discovered at Paris in 1919 and around 42,000 ounces have been recovered from the area to date, most recently in 2016-17 when about 18,000 ounces were produced from around 187,000 tonnes of open pit material processed at the Greenfields, Higginsville and Lakewood plants.
Jindalee’s Widgiemooltha project tenements and Torque Metals’ tenements over regional aeromagnetics
Minimum first-year expenditure of $50,000
Under the agreement terms, Torque will reimburse Jindalee for previous costs and can earn an 80% interest by spending $200,000 on exploration within three years of execution of a formal agreement, with minimum expenditure of $50,000 in the first year prior to withdrawal.
The formal agreement is expected to be completed shortly.
Once Torque has earned an 80% interest Jindalee’s 20% interest is free-carried to completion of a pre-feasibility study (PFS).
On completion of the PFS, Jindalee can elect to contribute pro-rata or dilute with Jindalee converting to a 1.5% royalty once its interest falls below 5%.
Jindalee continues to hold an extensive land position in the Widgiemooltha district prospective for gold, nickel and lithium and the company is encouraged by recent discoveries adjacent to Jindalee’s tenements.
Response to COVID-19
COVID-19 related travel bans have restricted Jindalee personnel from accessing the flagship McDermitt Lithium Project site in the US and meeting face-to-face with contractors and potential US investors.
However, a metallurgical test work program has been developed in conjunction with US-based consultants with representative samples from McDermitt shipped to a metallurgical laboratory in Colorado for processing.
The test work is designed to identify the potential to upgrade the ore by screening and reduce acid consumption by removing carbonate prior to leaching.
Additionally, a sample has been shipped to Perth to trial an alternative processing route, involving roasting the ore with limestone and gypsum and then leaching with water to produce lithium sulphate.
Results from both programs will be reported as they become available.
In order to reduce costs until financial markets stabilise, executive director Lindsay Dudfield and chairman Justin Mannolini have elected to suspend their remuneration until further notice and the company is looking at other opportunities to implement cost savings wherever possible.