Orminex Ltd (ASX: ONX) is a metals and mining company involved in the exploration and development of gold in Australia.
In an announcement dated 7 May 2019, Orminex Ltd confirmed the acquisition of Penny’s Find Gold Mine, located close to Kalgoorlie in Western Australia. Prior to this acquisition, ONX was operating on two projects namely – Comet Vale and Golden Lode.
The deal was first announced by the Empire Resources last month where the ASX-listed miner announced that it has executed a binding term sheet with Orminex for the sale of 100% of its Penny’s Find gold mine.
The acquired land includes 100% interests in Mining tenements M27/156, home to open pit mine and mineral resources, G27/01, L27/90 L27/91, L27/92 and L27/93 – these include roads to mines and access to roads within mining areas. The consideration for the acquisition includes cash payments totalling to $600,000, 5% royalty on first 50,000 ounces produced from M27/15 and after 50,000 ounces a 2.5% net smelter royalty for life of mine.
Daryl Henthorn, Executive Chairman of Orminex Ltd, discussed the strategic importance of the acquisition for Orminex as the acquired site is close to Comet Vale project of the company.
Penny’ Find is strategically located within 30 minutes’ drive of Kalgoorlie and the distance between comet vale and Penny’s Find High-Grade Gold Mine is also accessible; transportation will reportedly take one hour to reach Penny mining site from comet vale. Infrastructure and facilities at Comet Vale seem to support the processing and mining operations.
Empire Resources previously reported that Penny’s Find Gold Mine has 56,000 ounces of gold at high grades in 2017 underground mineral resource report. As per the company’s information no new study has been conducted to evaluate the availability of gold at high grades.
Mineral resources of 248,000 tonnes at 7.04g/t Au covers the base of the open pit to at least 250m below the surface and remains open at depth; the underground resource contains only fresh mineralisation and is defined by 1.5g/t Au. Quartz vein includes the high-grade gold mineralisation at Penny mine which remains in the contact between basalt and sediments.
On 13 December 2017, Empire Resource Limited announced the results of the study conducted to evaluate resources estimation at Penny’s Find. Empire’s DataGeo Geological Consultants conducted the study and incorporated results from all previous drillings with the most recent being diamond drilling as reported on 6 November 2017. Orminex has taken all the information and data with respect to the proposed underground mine including drill data, geological information, the underground mining model and all independent consultants’ reports.
Further, Orminex has recently formed a strategic alliance with GBF Mining Pty Ltd with the aim to develop, fund stranded, high-grade gold assets into production. Orminex and strategic mining partner GBF Mining Pty Ltd will apply for license and approvals to commence underground mining. Orminex holds 51% in alliance with GBF Mining Pty Ltd.
The company also confirmed that it is continuously reviewing potentially suitable projects and update the investors accordingly.
ONX is trading flat as at 9 May 2019 (12:21 PM AEST). The stock last traded at $0.120 with a market capitalisation of $64.69 million. Over the past 12 months, the stock has gone up by 135.29%, and YTD stands at negative 42.86%.
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