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.
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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.
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By GlobalDataKey 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.”
