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.

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.

Upon 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.