Artemis Resources has negotiated a copper supply deal with Blackrock Metals, the operator of the Whim Creek copper heap leach and SX-EW recovery operations in Western Australia.
Under the deal, Blackrock will purchase an initial 50,000t of copper oxide ore at 1.5%, located in surface stockpile SP1 and SP2 from the Whundo Copper Mine located in Western Australia.
Deliveries are expected to commence from the start of the next month.
Artemis chairman David Lenigas said: “Artemis is not only planning to commence gold production from its Nickol River next week, but this deal also gets us in to profitable copper production very quickly.
“We also see tremendous scope to rapidly expand this deal with Blackrock in the coming months.
“With unmined copper oxide drilling intercepts such as 25m grading 2.20% Cu (WHGC031 from 1m), 23m grading 2.9% Cu (WHGC036 from 1m) and 9m grading 3.60% Cu (WHGC029 from 2m) in the south side of the existing Whundo pit, we also plan to kick-on and quickly start drilling again with a view of re-opening the Whundo Copper Mine this year as a copper oxide producer.”
Under the arrangement, Blackrock will purchase an initial 50,000t of existing copper oxide ore from Fox Radio Hill, the owner of the Whundo Mine.
Purchased ore will be transported in trucks to Whim Creek, 160km away.
Whundo is one of the Fox Radio Hill assets that is being purchased by Artemis from Fox Resources Limited and any revenue received by Fox will be deducted from the $2m cash payment owed by Artemisto Fox resources under the previously announced Artemis/Fox transaction.
Blackrock will hold responsibility for payment of all applicable royalties, loading, transportation, processing and sales costs of the copper.
A programme of works (POW) has been submitted to the DMP to conduct an extensive drilling campaign at both the Whundo and Whundo West pits with the aim to expand the open-pit oxide resource.
Drilling at the project will start after receiving POW approval.
Image: A stockpile of copper oxide ore at Whundo mine. Photo: courtesy of Artemis Resources.