OzAurum Resources to share profits in WA gold heap leach proposal

OZM signs deal with Line Hydrogen and BIM Metals to complete heap leach study for the Mulgabbie North gold deposit.

The study is expected to take 12 months to complete. Pic: via Getty Images

• OZM teams up with LHBM for Mulgabbie North heap leach feasibility study

• The deal includes a 50:50 profit share arrangement

• Company says project resources provide solid foundation for study

 

Special Report: OzAurum Resources is taking steps to commercialise its WA gold assets, signing an agreement with Line Hydrogen and BIM Metals (together LHBM) to complete the Mulgabbie North gold heap leach feasibility study, which will be fully funded by LHBM.

The project has a resource estimate of 11.6Mt at 0.7g/t gold for 260,000 ounces of gold, and with 64% consisting of measured and indicated ounces, it provides a solid basis foundation for the Mulgabbie North heap leach Study.

OzAurum Resources (ASX:OZM) is also smack bang in the middle of the world-class gold district of Kalgoorlie, around 3.5km from Northern Star Resources' (ASX:NST)  4Mtpa Carosue Dam mining operation and mill.

Metallurgical test work undertaken to date has resulted in up to 88.9% gold recoveries via intermittent bottle rolls, with the focus of the planned study work to be on the oxide and transition components of the resource to be processed via heap leach operation based onsite at Mulgabbie North.

The study is expected to take up to 12 months.

If a decision to commence production is made by the parties, LHBM will operate and be responsible for funding the proposed mining and heap leach operation with net cash after operating costs and capital costs to be split 50-50 between OzAurum and LHBM.

Experienced engineer a bonus

Brendan James is the principal of both Line Hydrogen and BIM Metals and is a hydrometallurgical engineer with over 25 years’ experience in the design and operation of heap leach mining operations.

And with James involved in all aspects of the Study and potential future mining and heap leach operations, the company believes this significantly derisks the project for OZM shareholders moving forward.

“I am very excited that Brendan James from LHBM has selected the Mulgabbie North gold project to fully fund the feasibility study and, if the feasibility study economics are acceptable, to obtain funding and operate a potential future heap leach mining operation at Mulgabbie North,” OZM CEO and managing director Andrew Pumphrey said.

“Brendan brings a wealth of experience to the table in design, construction and operation of heap leach projects in Australia and overseas which helps in derisking the project for OZM shareholders.

“The White Dam heap leach in South Australia is an example of a highly successful gold operation that Brendan ran for a number of years.”

If the study economics are acceptable, Line Hydrogen will aim to produce Net Zero Gold from the Mulgabbie North Gold Project as part of its strategy to develop commercial scale green hydrogen for diesel fuel replacement in Australia.

“Coupled with his ambition to produce Net Zero Gold we are all excited to see the Mulgabbie North project move forward and, potentially into gold production,” Pumphrey said.

Pic: Mulgabbie North gold project and new targets. Source: OZM.

Ongoing exploration planned

Meanwhile, OZM intends to follow up on two new cross fault target zones at the project, which it believes has the potential for significant gold mineralisation.

Historic drill holes that will be followed up include:

• 10m at 1.36 g/t gold from 100m including 1m at 6.38 g/t gold (Cross Fault 1 target); and
• 11m at 1.90 g/t from 49m including 1m at 12.15 g/t gold (Cross Fault 3 target).

Notably, gold mines in Northern Star’s nearby 3Moz Carosue Dam gold camp are associated with cross faults.

“We have identified new cross fault targets from the seismic interpretation the company undertook a while back and I am keen to see us drilling these new areas to see what we can discover,” Pumphrey said.

Since listing on the back of its WA assets, OzAurum has diversified into Brazil where it has a range of critical minerals prospects.

This article was developed in collaboration with OzAurum Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as OzAurum Resources to share profits in WA gold heap leach proposal