Resource in Deal with Covergent over Bounty Mine

13 August 2009 (Last Updated August 13th, 2009 18:30)

Resource Gold has signed a deal to recover gold from the Bounty mine owned by Covergent Minerals in Western Australia. Resource Gold will process coarse gold from remnant material and surface soil and in return it will pay Convergent a royalty of 40% of the net value of any gold recov

Resource Gold has signed a deal to recover gold from the Bounty mine owned by Covergent Minerals in Western Australia.

Resource Gold will process coarse gold from remnant material and surface soil and in return it will pay Convergent a royalty of 40% of the net value of any gold recovered up to a total of 5,000oz.

In excess of 5,000oz the royalty increases to 50%.

The programme will be conducted in two phases with the first focusing on material recovered from the vicinity of the old gold room and elution-leach-thickener tank facilities.

The approval for Phase 1 is expected within six weeks, Covergent said.

The company is halfway through its 15,000m RC drilling programme at Bounty, targeting resource definition and extension along known mineralised trends.