Round Oak Minerals has sold its 50% interest in the White Dam copper-gold project in South Australia to the company’s joint venture partner in the project, GBM Resources Ltd.
Round Oak will receive a cash payment of $500,000 for the sale and a refund of $1.9 million in environmental bonds which will be replaced by GBM.
In addition, Round Oak will retain an entitlement to a royalty payment on any future copper and gold production revenues and GBM will assume environmental liabilities for closure. The transaction is scheduled for completion on July 29.
CEO Rob Cooper said White Dam had been an excellent asset for Round Oak since 2003, when Round Oak’s predecessor company Exco Resources first became involved with the project.
“We are delighted to have been involved with White Dam for such an extended period, and would like to thank the team at White Dam who have overseen significant improvements in the operation. We look forward to seeing GBM continue to grow the project successfully into the future,” he said.
The White Dam operation is located in the Olary Province of South Australia, on the southern margin of the Curnamona craton, 80km south-west of Broken Hill in NSW.
The operation consists of open pit mines, a dump/heap leach, gold and copper extraction facilities, and related infrastructure. Over its life the operation has produced approximately 175,000 ounces of gold from approximately 7.5 million tonnes of ore at a grade of 0.94g/t Au, mined from two open pits – Hannaford and Vertigo. The recently constructed SART (sulphidisation, acidification, recycling and thickening) plant is also producing a copper concentrate and recycling cyanide that can be used in the gold circuit.