Tombola Gold to acquire 72,000-ounce resource in Cloncurry as it remains on track for gold production in 2022
Proactive Investors
Published Sep 19, 2022 09:31
Updated Sep 19, 2022 10:00
Tombola Gold to acquire 72,000-ounce resource in Cloncurry as it remains on track for gold production in 2022
Tombola Gold Ltd (ASX:TBA) is set to add a 72,000-ounce gold resource to its portfolio via the acquisition of True North Copper Pty Ltd’s Wynberg and Wallace South projects in Queensland.
Both projects offer immediate synergies with Tombola’s existing operations and will bring greater flexibility and increased production capability into the existing mine plan.
Tombola’s assets in the Mt Freda Complex in Cloncurry consist of several gold mines including the Mt Freda Gold Project and Golden Mile Project.
The company has also advanced the construction of the Lorena CIL plant and has a well-defined expansion strategy of utilising near-term gold cashflows to drive resource expansion.
Acquisition of TNC gold projects
Tombola entered a binding term sheet with True North Copper (TNC) in July 2022 for the acquisition of various interests in five additional projects around the Cloncurry region.
The tenements that comprise the TNC Gold Portfolio consist of three mining leases (MLs) and two exploration permits for minerals (EPMs).
The majority are directly east and southeast of the township of Cloncurry. Resources have been reported now for the first time at Wynberg and Wallace South.
TNC JORC-compliant resource estimate.
The completion of the acquisition of the new projects will be subject to the usual approvals by third parties (the responsible Minister, native title holders and novation of existing contracts).
Notably, the acquisition will significantly add to Tombola’s resource inventory and will provide feed for the Lorena processing facility, once commissioned.
“Fast-track towards gold production”
Tombola managing director Byron Miles said: “The mineral resource estimate for Wynberg and Wallace South of 72,000 ounces gold will add significant ounces to the company’s existing resource base in the broader Cloncurry region.
“It is pleasing to see that the acquisition of these assets from True North will significantly add to the minable resources available as we look to fast-track towards gold production, with Wynberg being development ready and covered by an existing mining lease.
“In addition, the pipeline of exploration projects that this acquisition brings to the Tombola table offers significant upside to the current mineral resource inventory”.
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