Torian buy bolsters Leonora gold project

TORIAN Resources has bought the Tarmoola Station and an associated mining business as it consolidates its position in gold-rich Leonora, Western Australia, and the benefits will be substantial.
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Paul Hunt

Senior Journalist: Energy & Commodities

Paul Hunt

The acquisition of Tarmoola Station will bring down any discovery costs at the Mt Stirling gold project, according to Torian Resources executive director Peretz Schapiro.

The total cost of the acquisition - which not only includes the acreage, but all mining equipment onsite - is estimated at $4.97 million.

Joint venture partner RiverFort will stump up $3.27 million, while Torian will contribute $1.7 million.

Schapiro said the Tarmoola Station had a 20-person mine camp, and infrastructure for future development including access tracks and an extensive network of bore water wells powered by renewables.

Under the acquisition, Torian will also take ownership of Carhill Contracting, which provides mining machinery and vehicles to nearby mine operators.

The station also contains about 1100 head of cattle and $360,000 worth of carbon credit revenue on an annual basis.

The company intends to muster and sell the cattle in August to provide short-term revenue.

Tarmoola Station stretches across 172,622 hectares roughly 25km northwest of Leonora and borders Glencore Mining's Melrose Station.

About half the acreage is already covered by mining and exploration leases.

The station hosts other big gold deposits including Red 5's King of the Hills and Round Oak Mining's Jaguar project.

Schapiro said the acquisition fit with the company's long-term strategy of consolidating acreage near the planned Mt Stirling gold mine.

"As owners of the pastoral lease we will be able to reduce our discovery cost per ounce and ensure the process of obtaining permits for our exploration and potential future mining activities, is as seamless as possible.

"Owning and controlling the pastoral lease on which the majority of our flagship projects lies, in addition to the accommodation facilities and earth moving equipment, gives us enormous flexibility when it comes to our future exploration plans."

Schapiro said the Tarmoola Station purchase was a crucial step towards fast-tracking Mt Stirling's exploration and mining.

Mt Stirling is estimated to contain resources of 3.1 million ounces at an average grade of 1.5 grams per tonne.

In June, Torian conducted an eight-hole drilling campaign of the resource and found a gold system extending to depth below 100m.

Additional drilling will be conducted over the next three months.