Native Mineral Resources Holdings (ASX: NMR) is accelerating its plans to re-start production at its newly acquired, advanced gold project near Charters Towers, Queensland.
Earlier this month, NMR signed a binding agreement to acquire the Far Fanning and BlackJack deposits, BlackJack processing plant, and other assets, for $18.9 million. The acquisition aims to provide NMR with an accelerated path to gold production as well as resource growth opportunities.
Following recent selective sampling of Far Fanning stockpiles, which returned results of up to 85.1g/t Au, with 45 samples assaying greater than 0.5g/t Au, NMR will commence drilling at Far Fanning this week, aiming to upgrade the deposit’s Inferred MRE of 2.3Mt @ 1.84g/t Au for 138,000oz gold (JORC 2012), with infill drilling expected to upgrade it to Indicated status.
NMR has engaged Mining Associates Ltd (MA) to oversee this process, including providing guidance on drilling locations.
NMR is also continuing its sampling program at Far Fanning, with 75 samples to date returning results which demonstrate gold mineralisation3&4. Approximately 220kt of stockpiled material awaits sampling.
“Since announcing our acquisition of this project in early November and following completion of the placement last week, we are accelerating our work as we look to leverage the advanced status of the Far Fanning and BlackJack projects to transform the company into an emerging Queensland gold producer in 2025,” Managing Director, Blake Cannavo, said.
“Far Fanning’s stockpiled material and existing JORC 2012 MRE provides us with a strong foundation on which to achieve this goal and we are excited about its potential. While completing drilling that aims to upgrade the confidence in the MRE, we are also sampling stockpiled material onsite, which will then be crushed, screened and sorted, and has potential to be processed at BlackJack processing plant.
“We are also undertaking a full assessment of infrastructure at Blackjack processing plant, including the plant and buildings, to determine if this can be refurbished or replaced in a timely manner to help support our gold production goals.”
Far Fanning infill drilling is expected to be finished in early CY2025 and when results are received an updated MRE will be released.
BlackJack processing infrastructure
Following NMR's recent acquisition, the company has engaged engineers and consultants to perform a thorough assessment of the BlackJack Processing Plant, which is in better condition than initially anticipated. The company is currently completing a detailed evaluation of key components, including performance testing and functional checks, to ensure they meet operational standards and are prepared for refurbishment, while on care and maintenance.
NMR believes the newly acquired projects have the potential to be in production in late 2025. Alongside the current drilling programme for Far Fanning and ongoing exploration programs for its existing projects, the company is exploring several fundraising pathways to bring Far Fanning and BlackJack back into production.
