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Highlights
- AuKing Mining (AKN) set to earn a 15% interest in the Cloncurry Gold Project.
- Focus on resource updates and Lorena gold-copper processing plant recommissioning.
- Exploration drilling planned at Mt Freda, Golden Mile, and Mt Scheelite prospects.
AuKing Mining (ASX:AKN) has taken a significant step forward in its partnership with Orion Resources as it moves closer to earning a 15% interest in the Cloncurry Gold Project, located in northwest Queensland. This development follows a detailed briefing outlining Orion’s plans for 2025, which include exploration drilling, resource updates, and studies aimed at recommissioning existing facilities.
The earn-in agreement allows AuKing (AKN) to secure its stake by contributing $1.5 million in project expenditure by the end of 2025. This positions the company within reach of a near-term gold-producing asset, bolstered by the presence of the Lorena gold-copper processing plant and promising mineral tenements.
Exploration and Resource Development Plans
The project is set to focus on updating the mineral resource estimates for the Mt Freda and Golden Mile areas. Consultants have been engaged to conduct a conceptual mining study, aiming to provide key data that will support future mining and economic studies. The updated JORC resources, coupled with drilling at Mt Freda and Golden Mile, will improve resource confidence and guide subsequent development phases.
Adjacent to these areas lies the Mt Scheelite prospect, where Orion plans additional drilling. Historical exploration reported by Tombola Gold in 2022 yielded strong gold results, including intercepts such as 15 metres at 6.96 g/t gold from a depth of 28 metres, with a higher-grade section of 5 metres at 11.20 g/t gold. This area’s proximity to the Golden Mile pits enhances its potential for resource continuity.
Lorena Processing Facility Recommissioning
Orion Resources has finalized an asset sale agreement to acquire the Lorena gold-copper processing plant, located 15 kilometres east of Cloncurry. The facility, with a processing capacity of 250,000 to 300,000 tonnes annually, plays a key role in the project’s restart strategy. Plans include refurbishing the facility, addressing tailings storage, and securing regulatory approvals, which will be outlined in a fully costed recommissioning study.
The project’s restart strategy emphasizes leveraging existing infrastructure and prior operational data, ensuring a streamlined approach through study phases. The conceptual mining study and mineral resource review are expected to be completed by early 2025, providing essential insights for advancing exploration and production activities.
The collaboration between AuKing Mining (AKN) and Orion Resources marks a significant development for the Cloncurry Gold Project, with exploration and recommissioning efforts set to unlock its resource potential.
