PanTerra Gold and Guangxi Gold (GGC) have agreed to jointly construct a 25,000tpa Albion/carbon-in-leach (CIL) demonstration plant in China's Guangxi Province to process arsenopyrite ores.
Under the agreement, GGC will manage various gold mine operations in Guangxi Province and develop extensions to Jinya and Nalin mines.
PGT will rely on drill core and ore samples to be provided by GGC to produce a representative concentrate and undertake metallurgical test work to determine gold recoveries.
The company will also establish a preliminary design and costings for the Albion/CIL plant, which can be further expanded to 50,00tpa size and operated for 15-20 years.
As part of the development concept, GGC will establish and operate the mines and deliver ore to stockpiles. PGT will then blend the ore to provide predictable sulphide levels in-feed to the process plant.
PGT will design and construct the plant next to the larger mine, which could be expanded in stages to 50,000tpa or 75,000tpa.
Upon completion, GGC will provide a suitable site, infrastructure, and tailings dam storage for the plant.
PGT will manage any development and be responsible for plant operations.
The plant's target is to produce a minimum of 25,000oz Au per annum for each stage of installation.
By purchasing mined ore, the joint venture will be responsible for milling, production of concentrate and processing through the plant to produce doré.
The technical and economic evaluation for the demonstration plant is expected to be completed by mid-2017.