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- Golden State Mining (GSM) has signed a purchase agreement with Adaman Resources for the mining and process gold-bearing tailings at the Cue Project
- Adaman will mine and process around 48,000 tonnes of remnant mine tailings (or battery sands) from the Cue No.1 and Salisbury mines
- The sale price for the battery sands will be trusted in a 50:50 share profit arrangement
- Under the agreement, the sands will be processed at Adaman’s Kirkalocka Gold Mine processing plant
- Golden State remains steady on the market this morning and is selling shares for 35.5 cents each
Golden State Mining (GSM) has signed a purchase agreement with Adaman Resources for the mining and process gold-bearing tailings at the Cue Project.
Adaman will mine and process around 48,000 tonnes of remnant mine tailings (or battery sands) from the Cue No.1 and Salisbury mines. It will then process the sands at its own Kirkalocka Gold Mine processing plant.
The sale price for the battery sands will be trusted in a 50:50 share profit arrangement.
However, before the deal is official, the companies will have to both be satisfied with the outcome from a 1000 tonne bulk sample. Each party will have the right to terminate the agreement, as long as it gives notice within 30 days.
If the bulk sample is successful, the companies aim to commence mining and processing in August.
In its day, the Cue No.1 Mine was one of the largest deposits in the Cue area. It produced a record 37,000 ounces of gold at an average grade of 31 g/t during the early 1900s.
At the time, the Salisbury Mine was a less significant producer, with a record 5902 ounces produced at an average grade of 18.51 g/t.
Golden State remains steady on the market this morning and is selling shares for 35.5 cents each at 11:06 am AEST.
