Coolgardie Minerals has commenced gold ore production at the Geko project near Coolgardie, Western Australia.
The company has a September 2018 sale agreement in place with Northern Star Resources for offtake of the first 100,000oz of gold from the project, which is expected to generate $10 million in revenue for Coolgardie.
It will start selling the Geko ore in mid-November at a fixed price of $1650/oz and a minimum grade of 2.75g/t. This will be delivered in parcels between 10,000–25,000 tonnes from October 1 2018 to March 31 2019.
The Geko open pit project is part of the wider Bullabulling gold project 60km west of Kalgoorlie in the Eastern Goldfields. Bullabulling includes over 60 prospecting and exploration licenses and tenements across a 460 square kilometre area.
Geko has estimated resources of 1.6Mt at 1.8g/t average gold for 91,900oz of contained gold.
Coolgardie previously produced a JORC 2012 mineral resource in November 2016 for the Geko project that estimated 2.5Mt at 1.6g/t of gold for 130,000oz of contained gold.
“This is another milestone for the company as we continue to achieve our targets in line with the mine plan,” said Bradd Granville, Coolgardie managing director.
“Revenue will commence next month from our ore sales to Northern Star and the 1.6Mt reserve will continue to be mined over the next 13 months.”