Gold miner Northern Star Resources has invested $23.2 million in Echo Resources to take a 16.4 per cent stake in the exploration company.
Echo is advancing the Yandal gold project in the Eastern Goldfields of Western Australia. The project, which comprises more than 1600 square kilometres of tenements, has mineral resources of 1.7 million ounces (Moz) and reserves of 856,000 ounces.
Simon Coxhell, Echo chief executive officer, welcomed the Northern Star investment less than 12 months after the company was formed through a merger between Echo and Metaliko.
He said the merger resulted in a company with some of the best underexplored gold ground in WA, plus a clear and cost-effective pathway to production with ownership of the Bronzewing processing hub.
“Since then Echo has increased its global resource base to 1.7Moz of gold, delivered an ore reserve of 15.6 million tonnes (Mt) at 1.7 grams a tonne of gold containing 856,000oz, and are well advanced on a bankable feasibility study to commence production through the Bronzewing processing hub,” Coxhell said.
He added that Echo has an active exploration program scheduled for 2018 to continue to grow its resource base and transition to production.