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Gold mining

Adelong Gold Limited and Great Divide Mining Limited Announce Joint Venture to Resume Gold Production

Strategic Insights

— 1 min read

Adelong Gold Limited has entered into a binding farm-in agreement with Great Divide Mining Limited to acquire a 51% interest in the Adelong Gold Project in southern New South Wales, Australia. The joint venture aims to resume gold production within 12 months, leveraging GDM's operational expertise and infrastructure. The Adelong Gold Project has a storied history of gold production, with over 800,000 ounces extracted to date, and a JORC 2012 Resource of 188,000 ounces. The agreement positions both companies to capitalize on the project's potential for further expansion through exploration.

Key Takeaways:

  • Adelong Gold Limited and Great Divide Mining Limited have entered into a binding farm-in agreement to acquire a 51% interest in the Adelong Gold Project.
  • The joint venture aims to resume gold production within 12 months, with a target of the first gold pour by leveraging GDM's operational expertise and infrastructure.
  • The Adelong Gold Project has a storied history of gold production, with over 800,000 ounces extracted to date, and a JORC 2012 Resource of 188,000 ounces.
  • The agreement includes a commitment to further exploration, development, and feasibility studies at the Adelong Gold Project to evaluate gold deposits and expand resources.
  • GDM will manage the project as Adelong Venture Manager, overseeing day-to-day operations and project development.
  • Adelong Gold will not be required to make any cash contributions to the project until gold production has commenced.
  • The joint venture includes critical milestones, such as achieving first gold production within 12 months, which, if not met, will allow Adelong Gold to reclaim 100% ownership of the project.

Statistics:

  • Adelong Gold Project area: ~70 km2
  • JORC 2012 Resource: 188,000 ounces
  • Total gold extracted to date: over 800,000 ounces
  • Initial Investment for 15% Stake: $300,000
  • Initial Works Program: expected to commence shortly after due diligence completion
  • Testing and commissioning works: expected to start at the Adelong Processing Plant during Q3FY24

Sources:

  • Adelong Gold Limited news release
  • ASX:ADG (Adelong Gold Limited)
  • ASX:GDM (Great Divide Mining Limited)
  • JORC 2012 Code
  • Challenger Gold Mines Pty Ltd

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