MACA the fron­trun­ner to op­er­ate Yan­dal mine

Kalgoorlie Miner - - NEWS - Josh Chiat

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.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.