MACA the frontrunner to operate Yandal mine
Mining services provider MACA is in the box seat to operate Echo Resources’ Yandal gold project after the junior raised another $4 million to underpin an updated feasibility on the northern Goldfields mine.
The project would see the revival of the Bronzewing mill near Leinster, with MACA announced yesterday as its preferred contractor to both mine the project and refurbish the processing plant.
Bronzewing has been shut since its previous owner, Navigator Resources, collapsed in 2013 against the backdrop of a sudden dip in the gold price.
An update to Echo’s coolly received feasibility study is expected to be released early next year, with a $4 million placement backed by previous investor Northern Star Resources ($2.5 million) and MACA ($1.5 million) expected to provide more capital to get it over the line.
Echo has also launched a 10.5¢-ashare entitlement issue to existing shareholders to raise another $2.5 million.
It wants to complete further drilling at the Mt Joel deposit to add to its baseload Orelia and Julius open pits.
Echo’s August feasibility study put a $39 million price tag on the project, although Echo chairman Barry Bolitho has told the Kalgoorlie Miner it is likely to be April before a final decision on the development is made, with new work factored into an “optimised” mine plan.
Former Barminco executive Victor Rajasooriar was installed as the company’s new managing director last month.
He said Echo was pleased to receive support from Bill Beament’s Northern Star, already a major shareholder, as well as MACA.
The private 11¢-a-share placement came in at a discount to Echo’s share price yesterday, with Echo stock rising 0.2¢, or 1.7 per cent, to 11.5¢ each.
The equity markets were also kind for Leonora-focused explorer Genesis Minerals, which tapped Perth brokerage Argonaut for a $5 million placement at 2.8¢ a share.
The cash will be used to conduct drilling and progress studies on Genesis’ 760,000oz Ulysses gold project, 30km south of Leonora.