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Highlights
- Orion prepares to restart gold production at Cloncurry Gold Project.
- AuKing Mining (AKN) aims to secure a 50% stake through A$5 million investment.
- Acquisition includes Lorena processing plant and key mining tenements.
Orion Resources is making strides toward resuming gold production at the Cloncurry Gold Project, a move that holds strategic significance for AuKing Mining (ASX:AKN). The company has secured the right to acquire a 50% interest in Orion through a structured A$5 million investment in project development, with completion expected by June 30, 2027.
This development positions AuKing Mining to benefit from early-stage cash flow opportunities while strengthening its foothold in the gold sector. The agreement includes contributions to exploration, drilling, and resource estimation at key mining sites, ensuring a well-planned path to production.
Orion’s Acquisition and Expansion Plans
As part of its preparations, Orion has entered into an asset sale agreement to acquire the Lorena processing plant and a portfolio of mining tenements near Cloncurry, Queensland. The Lorena plant, a conventional carbon-in-leach facility, is expected to play a crucial role in Orion’s production plans.
Additionally, Orion has secured exploration and mining leases approximately 30 kilometers south of the Lorena plant, covering a total of 447 square kilometers. This acquisition, which includes the Mt Freda/Golden Mile Project, is expected to reach financial close by April 2025.
Strategic Agreement Between AuKing and Orion
AuKing Mining has structured its agreement with Orion to earn a 50% stake in the Cloncurry Gold Project by contributing A$5 million toward development activities. These funds will support infrastructure upgrades at the Lorena plant, as well as further exploration at Mt Freda/Golden Mile.
Upon meeting the expenditure commitment, an incorporated joint venture will be formed between the two companies, with AuKing Mining holding a 50% shareholding in Orion. However, if the full investment is not completed by the deadline, the stake will lapse.
Gold Production Plans and Future Outlook
Orion is assembling a team of experienced professionals to oversee the restart of gold mining and processing activities. A well-defined strategic plan is in place, focusing on efficient project execution, profitable mineral production, corporate social responsibility, and risk management.
The Cloncurry Gold Project benefits from existing infrastructure, consolidated asset ownership, and a favorable gold price environment. Orion’s immediate focus is on restarting operations at the Mt Freda deposit, which previously produced 30,000oz of gold per year between 1987 and 1991.
Additionally, Orion has signed a binding memorandum of understanding with AuKing Mining and Tick Hill Mining to explore the feasibility of processing materials from the Tick Hill mine at the Lorena plant. A 2020 Pre-Feasibility Study confirmed the technical and economic viability of the Tick Hill project, with updated assessments underway.
With Orion advancing its acquisition and operational plans, and AuKing Mining securing its stake through a structured investment, the Cloncurry Gold Project is set to become a key player in the Australian gold sector.
