The acquisition is significant for Goldfields because it will add to its dominant position in the Kundana region of WA’s Eastern Goldfields. Goldfields will pay Melbourne-based explorer Mineral Commodities $9 million for the stake after the junior became exasperated at the time it was taking to mine the ground.
Goldfield’s managing director, Peter Cassidy, expects the deal to go through “very shortly, within the next two to three days”
White Foil is 8km south of Goldfields’ Kundana operation and in the same line as a number of other interesting high-grade deposits, including the Raleigh deposit, although Goldfields is unsure whether it comprises an extension of the same vein.
White Foil contains a resource of 11.8 million tonnes at 2.4 grams per tonne for 915,000 ounces of gold.
The remaining 51% of Mungari West is held by Mines & Resources, a wholly-owned subsidiary of the French Cogema group, which is also the current manager.
Goldfields and Cogema already have a strong working relationship, with Goldfields, through its wholly-owned subsidiary Gilt-Edged Mining, a 49% partner with Mines & Resources in the Cutters Ridge Joint Venture, 20km north of Coolgardie.
Previous drilling at Cutters Ridge has defined a resource of 2.1 million tonnes at 1.33gpt for 90,000oz.
Goldfield’s managing director, Peter Cassidy, said the company would talk with Mines & Resources about expediting the development of the White Foil deposit.
“One option available is to process ore from White Foil through the Paddington plant,” he said.
“This option would have the potential to extend the existing life of the Paddington plant by about a further three years, allowing more time to explore and further rationalise the region.”
Gold bugs still have their eye on the Kalgoorlie region as AMX Resources readies to sell its Golden Cities project. AMX announced in June that it was leaving mining in favour of opportunities in the telecommunications sector.
The company has retained Hartley Poynton to act as corporate advisor for the marketing and sale of the project. AMX is assisting Hartley Poynton put together an information memorandum relating to the assets.
