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- Elmore (ELE) has expanded the scope and potential duration of its contract with Territory Minerals for projects in Far North Queensland
- Under the expanded agreement, Elmore will take responsibility for design, licensing and total project management
- Elmore will also provide up to $2 million working capital after finalising licensing and establishing plant, with operating costs recovered
- All free-cash will be divided equally between the two companies
- The company’s new ball mill is on schedule to be fully assembled and ready to operate in Q4 2022 with the components now arriving in Western Australia
- ELE shares were up 6.98 per cent at 4.6 cents
Contract minerals processing company Elmore (ELE) has expanded the scope and potential duration of its contract with Territory Minerals for projects in Far North Queensland.
The contract, which was limited to 2.5 years or around 1 million tonnes production, has been expanded to Elmore taking responsibility for design, licensing and total project management over all of Territory’s projects that have defined mineralisation.
Under the expanded agreement, Elmore will provide up to $2 million working capital after licensing has been finalised and the plant is established, with operating costs recovered and then all free-cash will be divided equally between the two companies.
To date, Territory has defined about half a million ounces of gold mineralisation, contained in over 8 million tonnes of host-rock.
Elmore confirmed it owns the majority of the process plant intended to be used on the projects and has only a small amount remaining to be sourced to complete the plant.
“Territory Minerals’ Far North Queensland projects represent an ideal opportunity for Elmore to showcase how a large moveable process plant can transform a project … into one that could generate a [healthy] return to both the project owners and Elmore,” said Elmore Managing Director David Mendelawitz.
Commencement of the project was delayed to the lack of access to site brought on by the COVID-19 state border lockdowns but both companies remain optimistic about their partnership.
Elmore’s new ball mill is on schedule to be fully assembled and ready to operate in Q4 2022 with the components now arriving in Western Australia.
Once assembled, the company believes that the mill will be the biggest moveable ball mill in the world.
The company intends to take the mill to Territory’s projects, once the first site is licensed, along with a mobile crushing and screening plant and a flotation circuit that has yet to be procured.
Elmore said it is also assessing an opportunity to utilise the plant on the way to Territory’s projects, processing some near surface gold mineralisation next to the Peko tailing project that the company manages in the Northern Territory.
ELE shares were up 6.98 per cent at 4.6 cents at 10:10am AEST.
