Tyranna Resources Eyes Producer Status at Eureka Gold Project, Western Australia
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Tyranna Resources Ltd aims to transition from explorer to producer through its recently acquired Eureka Gold Mine located north of Kalgoorlie in Western Australia.
The project was acquired in December 2017, and drilling is expected to enhance the exploration upside outside the known pit mineralization.
Grade control drilling for the planned cutback will commence immediately after the local contractor has completed mining within the pit.
Eureka has an historical non-JORC mineral resource of 451,000 tonnes at 4.4 g/t gold for 64,200 ounces of contained gold.
PRODUCTION TO EXTEND DEPTH OF OPEN PIT BY 20 METERS
Eureka is currently being mined by a local contractor and production is scheduled to extend the depth of the current open pit by approximately 20 meters.
This is expected to be completed during the March quarter and Tyranna will receive a 4 percent net smelter royalty from the sale of gold during this campaign.
This will be used to offset the $3.2 million cash and equity acquisition price which involved an initial cash payment of $250,000.
A final cash payment of $1.1 million is to be made along with the issue of circa 94 million Tyranna shares.
NEW APPOINTMENT PROVIDES A BOOST
Tyranna’s retention of highly experienced geological consultant Richard Maddocks also appears to have contributed to share price momentum today.
The company’s shares were up circa 20 percent in mid-morning trading, hitting a high of $0.025
Maddocks previously held senior management positions with companies such as Saracen Mineral Holdings, Troy Resources and Placer Dome.
He was chief geologist at the 1.1 million ounce Paddington Gold Mine located 35 kilometers from Kalgoorlie, indicating he understands the characteristics of projects in Eureka’s region.
Source: Proactive Investors
About Tyranna Resources
Tyranna Resources Limited is an ASX listed resources company, whose key focus is the Jumbuck Gold Project located near the lucrative +1 million ounce, high grade Challenger Gold mine in the Gawler Craton of South Australia.
To stop by Tyranna’s website, CLICK HERE
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