Canada-based Scorpio Gold’s affiliate Goldwedge and Lode-Star Mining have signed a toll milling agreement for the milling facility in Manhattan, Nevada, US.
Under the agreement, the ore delivered from Lode-Star’s mining properties will be processed to Scorpio Gold’s 400tpd Goldwedge mill.
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The Goldwedge mill is located 54km north of Tonopah in the Manhattan Mining District of south-central Nevada, US.
Fully owned by Scorpio Gold, the mill is situated 120km north of Lode-Star’s Goldfield Bonanza property.
Under the contract, Lode-Star will advance the funds required for mill modifications to process its ore, which includes the addition of a flotation circuit to the mill that is currently configured with a gravity circuit.
Scorpio Gold noted that the expenses incurred for the mill upgrades will be recouped through reduced toll milling rates until all funds are repaid.
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By GlobalDataUpon the addition of the flotation circuit, the Goldwedge mill will be capable of processing both carbonaceous and sulphidic ores, with a greater toll milling availability and improved recoveries for any further processing within the Goldwedge deposit.
Scorpio Gold president Chris Zerga said: “This toll milling agreement is the achievement of many hours of work between Lode-Star and Scorpio Gold’s management and both parties will greatly benefit from it.
“We look forward to working with the Lode-Star team and positioning the Goldwedge mill for additional toll-milling opportunities.”
Lode-Star is engaged in the exploration, development and production of North American mineral assets.
In May 2017, Scorpio Gold started the milling of Lode-Star Mining’s ore at Goldwedge processing facility.
Scorpio Gold completely owns both the Goldwedge and Mineral Ridge projects in Nevada. Mineral Ridge is a conventional open-pit mining and heap leach operation.
