Under the agreement, EC is responsible for transporting qualified mineral materials to a designated Erzpad Midas. Qualifying materials must meet certain minimum levels (> 0.3 ounces/tonne) and certain maximum concentrations of undesirable elements (up to 50 ppm mercury, 1% arsenic and 0.25% copper). The joint venture is paid according to a formula that compensates for moisture and recovery and is subject to a processing fee per tonne. The agreement is attractive to the joint venture because it allows the processing of certain suitable mineralized “oxide” materials that are or have already been mined in the Radcliff mine (in the central western part of the Panamint Mountains, in Inyo County, near Ballarate, CA). JV expects most of the materials extracted to be processed at the Bishop, California-based company`s gold plant: The Bishop Mill is being prepared for recommissioning in the first quarter of 2017. The agreement with Klondex provides for freedom of choice and immediate access to a processing facility. A toll management agreement is a two-party contract in which a tolling service provider, a contract processor or a “toll” agrees to produce a customer`s product for an agreed fee or a “toll.” This agreement is beneficial for both parties. With the addition of a flotation system, the Goldwedge milling plant will be able to process carbon/sulphide erte and increase its availability for toll strawberries. Lode-Star benefits from a long-term treatment contract for its erte on a site managed by an experienced processing team.
The mill is located in the immediate vicinity of the company`s mine, which minimizes transportation costs, and will have a milling circuit optimized for sharp metal recoveries. Once the flotation system has been added, the Goldwedge mill will be able to process both carbon and sulfidic ores, with greater availability of toll strawberries and improved recovery for any future transformation of the Goldwedge deposit. Under the agreement, Lode-Star will prefer the funds needed to build, approve and modify the mill. Based on previous metallurgical tests, the company`s ore requires gravity combined with flotation for optimal recovery of the precious metals contained. The Goldwedge milling circuit is currently configured with a gravity recovery circuit. Changes to the Goldwedge milling system include the addition of a flotation system, support for reagent/silos tanks, secondary coating of process retaining basins, leaking research, and monitoring of wells related to liquid closures. The agreement provides that Lode-Star will be able to recover advanced funds by lowering toll rates until all advanced credits are repaid. After the refund, the tolls will fall back on normal rates again. Vancouver, B.C. / TheNewswire / 1. September 2016 – CMC Metals Ltd .
(the “Company”) is pleased to announce that the company and Pruett-Ballarat Inc. (“PBI”), the mining operator and the company`s joint venture partner on Radcliff Mine Property, have jointly signed a toll-costing agreement with Klondex Mines Operation Inc. (Klondex) on behalf of their joint venture (“JV”). The renewable agreement for the purchase and sale of gold ore allows Klondex, up to 6,000 short tons (“tonnes”) of oxidized gold storage rocks delivered until December 1, 2016 in 1,500-tonne batches at their Midas mine processing plant in Elko County, Nevada: the agreement allows for the processing of a first “test” of cliff rad mineralized rocks (approximately 500 tonnes).