Tag Archives: toll treatment

Castillo Copper eyes recommencement of mining at Big One Deposit

Castillo Copper Ltd says it is looking to recommence mining at the Big One Deposit in Queensland, Australia, following positive assay results and highly favourable forward global demand for copper.

The company will start to prepare the groundwork for this milestone, it said, with the pending release of an inaugural JORC compliant resource for Big One one of the next major developments. Alongside this, the Castillo board is also firming up plans to apply for a mining lease.

Castillo’s strategic intent to recommence mining operations is supported, it says, by Big One Deposit’s key fundamental attributes:

  • A demonstrable high-grade shallow copper system that was previously mined in 1997 – producing 4,400 t of supergene ore, averaging 3.5% Cu – via several open pits;
  • Recent and historical drilling campaigns that have produced “exceptional” high-grade intercepts; and
  • Its location in the renowned Mount Isa copper belt, which has supportive mining infrastructure and third-party processors with excess milling capacity Castillo is now actively canvassing.

As part of its next steps, Castillo Copper now plans to carry out further work to extend known mineralisation and Big One Deposit’s potential scale, commencing with an induced polarisation survey to identify incremental test-drill targets.

Once ground conditions improve, post the wet-season, drilling will also resume at the Big One Deposit, then move to Arya prospect which has an interpreted 130 m thick potential massive sulphide anomaly (1,500 m by 450 m) that, the company says, is highly prospective for copper mineralisation.

Simon Paull, Managing Director of Castillo Copper, said: “The combination of excellent, high-grade assay results and buoyant global demand for copper means the board is prepared to step up its strategic intent for Big One Deposit.

“We are highly optimistic that the next phase of planned exploratory work has the potential to further extend known mineralisation and build out this high-grade shallow copper system. Consequently, the board believes it is prudent to start preparing the groundwork to potentially recommence mining operations.”

Lode-Star Mining finds processing facility for Goldfield Bonanza ore

Lode-Star Mining has signed a toll milling agreement with Scorpio Gold affiliate Goldwedge LLC that allows for the processing of ore delivered from the Goldfield Bonanza project to the Goldwedge milling facility in Manhattan, Nevada.

Under the terms of the agreement, Lode-Star will advance funds required for the design engineering, permitting and mill modifications to allow for the ore treatment.

Based on previous metallurgical testing, the company’s ore requires gravity combined with flotation for optimal recoveries of contained precious metals. The 363 t/d Goldwedge milling circuit is currently configured with a gravity recovery circuit, so the modifications to the Goldwedge milling facility will include the addition of a flotation circuit, supporting reagent tanks/silos, secondary lining of process containment ponds, leak detection, and monitoring wells associated with fluid containments.

The agreement provides for Lode-Star to recoup the advanced funds through a reduction in toll milling rates until all advanced funds have been repaid. Following repayment, the toll charges will revert to standard rates, the company said.

This agreement is mutually beneficial for both parties, according to Lode-Star.

“With the addition of a flotation circuit, the Goldwedge milling facility will have the capability of processing carbonaceous/sulphidic ores, expanding its availability for toll milling.

“Lode-Star benefits from having a long-term processing agreement for their ores at a location operated by an experienced processing team. The mill is in close proximity to the company’s mine, thus minimising haulage costs, and will have a milling circuit optimised for peak metallurgical recoveries.”

Lode-Star President and CEO, Mark Walmesley, said: “This agreement couldn’t be more timely. After considerable work between Lode-Star and Scorpio Gold’s management, both parties agree each company will greatly benefit from this agreement.”

Walmesley said Lode-Star had completed its underground infrastructure improvement phase of over 800 m of drift at the 300 ft (91.4 m) level.

“The company’s next focus is the execution of a surface drilling program…and the continuation of our disciplined mine-ready underground development,” he said. “I believe with the company’s steady completion of its milestones Lode-Star is now well positioned to raise capital.”