Terramin Australia Enters Gold Project Agreement With Kitticooler Holdings

  • Jan 09, 2019 AEDT
  • Team Kalkine
Terramin Australia Enters Gold Project Agreement With Kitticooler Holdings

As per ASX announcement on 9 January 2019, Terramin Australia Limited (ASX: TZN) entered into an agreement to become a joint entity with Kitticooler Holdings Pty Ltd, so that they can acquire a 100% of Private Mine No 53 which is located near Palmer, South Australia. This is an exciting opportunity at a time when the Australian gold price is near a record high.

Terramin Australia Limited is under the metal and mining sector engaged in the exploration and development of base and precious metals. The company was incorporated in December 1993, and it got listed on ASX in December 2003.

Kitticoola copper-gold mine located 2.5km south of Palmer was covered by Private Mine No 53 and it was operated between 1846 and 1971.

The agreement with Kitticooler Holdings Pty Ltd on Private Mine No 53 will provide the exploration rights and potential future mining rights over Kitticoola, subject to land access fees and a sliding scale royalty paid to Kitticooler Holdings Pty Ltd as follows:

  • The company will get 2.0% NSR royalty for all the gold produced from the Kitticoola Sites.
  • Kitticooler Holdings Pty Ltd will get 2.5% royalty if certain government fiscal concessions are provided to Private Mine No 53.
  • 0% NSR, in either case above, if the LME (London Metal Exchange) gold price is greater than A$1800 per ounce or a larger than expected resource is defined.

Private Mines are artifacts of changing mining laws in South Australia. Previously in the history of the state, the rights to minerals were authorized to the owners of freehold properties. In 1971, Mining Act was introduced as per which full mineral rights for the community were stopped, but existing minerals operators were granted a perpetual statutory right in the form of a Private Mine.

During the period 1846 to 1869, the Kitticoola Mine was operated as a copper mine. Till that time, Mine produced 7,000 tonnes of ore at an estimated average grade of 2.25% copper. In 1890, the gold potential of the mine was realized. The mine intermittently produced 30,000 tonnes of ore at an average recovered grade of 5.4g/t gold at that time.

Mineralization in the mine area is comprised of nine lodes, with only three lodes having been opened to any extent. The three lodes are the Baker, Mastermann, and Anstrey.

As stated by Terramin’s CEO Richard Taylor, the company is very excited about the opportunity of adding potential production from Kitticoola to its Bird-in-Hand Project which is situated in the Adelaide Hills. Private Mine No 53 is unique in that it remains an approved mine which has not operated since 1971. The mine is still subjected to the grant of updated environment approvals.

Mr. Taylor also stated that Kitticoola has had only limited modern exploration and presents significant synergies with Terramin’s other assets. If it becomes successful, then exploration would provide additional feed to processing planned for the Angas facility, which is situated in Strathalbyn. Operating the two projects would potentially increase the local employment.

On January 9, 2019, the shares of Terramin Australia Limited settled flat at A$0.115 per share. However, during the last three months, TZN delivered the return of 4.55% to investors.


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