The White Dam Gold Operation is located in South Australia, approximately 100km south-west of Broken Hill.
The White Dam Gold Operation is a heap leach project and since, 2010 has produced approximately 170,000 oz gold from heap leaching of ~7.5 Mt of ore which has been mined from two open pits. Available reconciliation of mining against resource estimates is good and indicates that a significant tonnage of mineralised material remains to be mined from both the Hannaford and Vertigo open pits.
In December 2019, GBM completed the acquisition of Millstream Resources Pty Ltd (Millstream). The Company signed a Heads of Agreement with Stibium to acquire its subsidiary Millstream Resources Pty Ltd (Millstream) for consideration of 15 million fully paid shares (Shares) (on a post consolidation basis) in the capital of GBM Resources Ltd (refer ASX announcement 16 October 2019).
Millstream Resources Pty Ltd can initially earn a 50% interest in the White Dam Gold Project as part of an unincorporated joint venture (Joint Venture).
The acquisition of Millstream has the potential to support the Company’s working capital requirements and ongoing development of the Mt Coolon Gold Project.
The White Dam Gold Operation includes the open pit mines, dump / heap leach, the gold extraction plant and related infrastructure.
The joint venture gives the opportunity for the Company to:
- Improve gold recovery at the White Dam Gold Project with the SART Plant to be commissioned in 2020
- Brings an experienced operational team.
- Provides the basis of an attractively priced acquisition.
- The gold recovery plant has the ability to be relocated to the Mt Coolon Eugenia Heap Leaching Project to support its possible development, should GBM exercise its option to acquire 100% of the project.
- Provides significant potential exploration upside from extension of existing pits and exploration of
identified structural and geochemical targets for new gold discoveries.