Terrain Minerals Limited (ASX:TMX)
Perth, June 12, 2009 AEST (ABN Newswire) - Terrain Minerals Limited (ASX:TMX) has reached an in principle agreement with Bundarra Mining Pty Ltd ("Bundarra"), a consortium of established mining contractors to open pit mine at the Celtic and Great Western gold deposits. The parties will now proceed to formal documentation.
Bundarra will provide all the working capital, with no charge to TMX and the mine profits will be divided 50:50 between TMX and Bundarra.
At Celtic a previous pit design had received statutory approvals to mine, but no operations were carried out. The open pit mine plan has now been reviewed by consultant mining engineers, Holly Mining Pty Ltd and Croeser Pty Ltd and probable reserve of 240,000t @ 2.12g/t gold (16,200 oz) has been confirmed.
At the Great Western deposit, a 2002 mining study identified a profitable open cut mining operation at the then prevailing gold price. A new pit optimisation study, incorporating present day costs and gold price is currently in progress.
Following the completion of the Great Western pit optimisation study a detailed mine plan and schedule will be developed for both deposits. Preparations are in progress to apply for the appropriate statutory mining approvals.
Separate mining studies are also underway on other Terrain held gold deposits.
Contact
Mr. Keith Wells
Managing Director
Tel: +61-8-9481-2455
email: terrain@terrainminerals.com.au
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