Bryah Resources Limited (ASX:BYH) has executed a Development Agreement with Kirkalocka Gold SPV Pty Ltd, a wholly owned subsidiary of Adaman Resources Pty Ltd, in respect to the company’s Tumblegum South gold deposit in the gold-rich Meekatharra region of Western Australia.
The Agreement provides that Bryah and Kirkalocka will work together and perform their respective obligations under the Agreement so that mining at Tumblegum South may commence at an agreed time after 30 June 2021.
Bryah Resources Managing Director, Neil Marston, said the Agreement contains Conditions Precedent which, upon satisfactory completion, Bryah and Kirkalocka will enter into a binding 50/50 profit share agreement which will see gold-bearing material mined at Tumblegum South then transported by road to the Kirkalocka Gold Mine facility located south of Mount Magnet for processing.
One of the challenges facing any company with gold mineral resources not large enough to support the construction of a standalone plant is securing access to facilities to process their material,” Mr Marston said.
“With the granting of the Tumblegum South Mining Lease in November 2020, we were able to advance negotiations with the team at Adaman Resources to this point. The Adaman group’s expertise in mining, processing and road haulage can provide the full suite of capabilities needed to bring Tumblegum South into production.
“Obtaining access to the Kirkalocka gold processing facility brings Bryah another step closer to realising the value of its gold resources at Tumblegum South.”
A Mineral Resource Estimation of Tumblegum South was completed in January 2020 in based on 49 reverse circulation (RC) drill holes for a total of 5,640 metres.
The Inferred Mineral Resource is 600,000 tonnes @ 2.2 g/t Au for 42,500 ounces gold using a cut- off grade of 0.3g/t Au.
The gold mineralisation occurs in multiple zones of shallow gold mineralisation, with down dip and along strike extension potential.