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Highlights
- Great Divide Mining collaborates with Adelong Gold to revive the historic Adelong Gold Mine.
- The venture could mark GDM's evolution from explorer to producer, starting with a 15% stake in the project.
- The partnership also includes potential resource expansion across 68 square kilometers with existing mining approvals.
Great Divide Mining (ASX:GDM) has entered a farm-in agreement with Adelong Gold (ASX:ADG), aiming to bring the Adelong Gold Mine back into production. This historic site, once a significant gold producer, is now poised for a new chapter as GDM takes the lead in managing operations in partnership with Adelong Gold. This agreement not only allows GDM to advance its capabilities in gold production but also solidifies its transition from an exploration company to an operational producer.
The Adelong Mine holds historical significance, having produced around 800,000 ounces of gold in its prime. While there are no promises of achieving similar production levels, the geological potential of the mine remains a key factor in GDM’s renewed interest. As part of this venture, GDM will initially secure a 15% stake in Challenger Mines, a subsidiary of Adelong Gold, following an investment of $300,000 in on-ground activities. The agreement further allows GDM to expand its ownership to a 51% stake upon successful gold production from the Adelong Mine’s processing facility.
GDM’s strategic move reflects its ambition to become a cash-generating mining business. According to GDM CEO Justin Haines, the partnership with Adelong Gold represents a crucial step toward achieving its production goals. Haines noted that the initial focus would be on restarting the current processing plant and developing a mine plan to extract the existing gold resources. The Adelong Venture, as the partnership is called, envisions not only production in the near term but also the long-term expansion of resources within the mine’s acreage.
Beyond the immediate project, the Adelong Venture covers an additional 68 square kilometers of land with partial mining permits, which could open further growth opportunities. This area offers potential for resource development that aligns with GDM’s vision of sustained gold production. The collaborative efforts between GDM and ADG reflect a strategic approach to harnessing the mine’s potential while establishing a production foothold in the industry.
In essence, the agreement between GDM and ADG signals a new chapter for both companies, underscoring the value of historical assets with modernized, productive outcomes.
