Central Rand Gold has completed and executed the definitive documents which will govern a joint venture tolling agreement (tolling venture) with a third party supplier of gold bearing ore (ore supplier) to supply and process gold-bearing material through its metallurgical plant.
Further to this Central Rand Gold has also received multiple deliveries of gold bearing ore from the ore supplier which is presently being stockpiled on site at the company’s metallurgical plant.
The ore supplier will continue to deliver gold bearing ore to the company over the coming days, before processing of the material by Central Rand Gold, commencing in late July 2016.
The plant currently has capacity for up to 20 000 tpm and the intention of the parties in the tolling venture is to fully utilise that capacity, or a minimum of 18 000 tpm.
Central Rand Gold is presently conducting metallurgical testing to ensure optimum recoveries of gold are achieved from the material.
Further joint venture opportunities
The gold mining firm is also advancing due diligences and negotiations with additional third parties regarding a variety of joint venture alternatives.However, given the commencement of the tolling venture, the joint venture opportunities will likely require the nameplate capacity of the Central Rand Gold’s existing metallurgical plant to be increased.
In this regard, the company is working closely with Zhejiang Golden Machinery Plant (ZGMP) to conduct various test work and due diligence work streams regarding the joint venture opportunities and the potential expansion of the existing metallurgical plant.
The company and ZGMP have worked closely throughout 2015 regarding potential metallurgical plant designs and configurations associated with the future exploitation of the its large-scale underground resources.
Central Rand Gold expects to be in a position to update shareholders regarding the joint venture opportunities in the near future.