Barra Resources has formalised an agreement with FMR Investments (FMR) to start an open-cut mining operation at Burbanks North, 9km south of Coolgardie in Australia.
The Burbanks North deposit lies within the company’s reservation area within mining lease M15/161.
In 2010, previous infill drilling at Burbanks North intersected downhole widths of shallow oxide gold mineralisation over a strike length of 100m.
Under the agreement, FMR and Barra will fund an 80-hole 2,450m infill aircore programme at the deposit in a bid to confirm and expand the existing mineralised zone over a strike length of 200m.
A resource estimation and financial evaluation will be carried out prior to confirming a decision to proceed with mining development.
The work with any future mining activities will provide information relating to strike potential of further mineralisation at Burbanks.
Key parts of the agreement cover the project area with grid coordinates between 6,850mN and 7,050mN.
Upon reviewing drilling results, FMR will sign a mining agreement with Barra to mine and mill the ore .
Barra Resources chairman Gary Berrell said: “This deal is a great opportunity for Barra to unlock value from Barra’s excellent portfolio of advanced gold projects at relatively low-risk to Barra, drawing upon FMR’s mining capability and access to its nearby Greenfields milling facility.”