Australian company finalises plan to purchase Gilded Rose. Pic. Thinkstock
Australian company finalises plan to purchase Gilded Rose. Pic. Thinkstock

North Qld gold mine sells, buyer to start mining

AN Australian mining company with a footprint in South Australia and Argentina has finalised its plan to purchase a Cloncurry gold mine.

PepinNini Lithium Ltd has announced the acquisition of the Gilded Rose Gold Mine, which includes four gold mining leases, one exploration lease and a processing plant that is not in operation, pending a review of mine operations and assets.

The whole process, from a review completion, to the initial production of 10,000 ounces of gold production, will cost the company about $2.2 million. The project, west of Townsville, has the capacity to process 60,000 tonnes of gold per annum.

The company has plans to begin mining at Gilded Rose in 2021. Current owners Ausmex Mining Group reported high grade gold intersections, with 22g of gold per tonne below the current Gilded Rose Open cut and more high-grade intersects west of the current mine.

PepinNini will review the mining equipment, resources, historical data and mining, tenement standing and environmental factors before the formal transition can be negotiated and agreed, as long as the company can raise $2m in capital and is satisfied with the review.

It will then be possible for the company to begin gold production at the project.

PepinNini has plans to review drilling by previous owners and possibly carry out further drilling to extend the current resources and recondition the gold processing plant.

It will also begin planning for an initial open pit followed by a potential underground operation for deeper resources.

Australian Mining reported Ausmex plans to use the capital it earns from the sale of the Gilded Rose Gold Mine to progress the Mt Freda gold and cobalt complex, also in Cloncurry, with gold production expected to begin in 2020. PepinNini was incorporated in August 2020 and has acquired a "highly prospective exploration portfolio" in Musgrave Province in South Australia and West Australia, its website said.

The company has also established a presence in Argentina, with its first tenement granted in April 2011.

"In Australia it currently holds an interest in 24 tenements covering approximately 11,450 square kilometres with potential for the rapid discovery and exploitation of a major new Australian mineral deposit," the website said.

Originally published as North Qld gold mine sells, buyer to start mining