St Barbra Limited (ASX: SBM) has entered into an agreement to acquire 100% of the shares in gold rich Bardoc Gold Limited.
- Bardoc holds Mineral Resource estimates of with 3.1Moz and 1.0Moz Ore Reserves estimate
- Significant land package including highly prospective Bardoc Tectonic Zone o Zoroastrian and Aphrodite deposits shovel ready o Located 180km south of Leonora adjacent to rail line and highway enable economic haulage to Leonora processing plant
- Acquisition coincides with upgrade of Tower Hill resource to 1.2Moz, an increase of 0.6moz
- Significant resource position underpins plans to expand the Leonora processing plant from 1.4Mtpa to 2.1Mtpa
- Growth plan funded through operating cashflow and existing debt facilities
“A key component of our Leonora Province Plan, which we launched in December 2020, was a review of opportunities in the region where we could deliver value,” St Barbara Managing Director and CEO, Craig Jetson said.
“Earlier this year we identified that the Bardoc ore bodies are in proximity to the Kalgoorlie-to-Leonora rail line and highway bringing them within economic haulage range of Leonora.
“In combination with our existing organic opportunities, including Tower Hill and Harbour Lights, this acquisition positions us to accelerate the delivery of a multi-decade province of satellite mines feeding an upgraded 2.1Mtpa capacity mill capable of alternating between free milling and refractory ore at Leonora.
“Importantly, our plans for the integration and development of the Bardoc deposits, as well as our other growth initiatives, will be fully funded through future operating cashflows and existing debt facilities.
“The addition of Bardoc’s extensive land package to St Barbara’s leading position in the Leonora province provides a strong platform for the company to deliver organic growth for years to come. Providing us with an expanded presence in the Western Australian goldfields; this transaction further establishes St Barbara as a growing gold company.”
The successful acquisition of Bardoc will give St Barbara access to the advanced Aphrodite and Zoroastrian underground deposits lying immediately adjacent to the rail line which runs to the Leonora processing plant.
Mr Jetson said this provides the opportunity to accelerate St Barbara’s Leonora Province Plan including:
• Integration of the Zoroastrian underground project into the Leonora Province Plan as a source of near-term mill feed; and
• The mining of the ore from the Aphrodite underground refractory deposit provides a high margin opportunity to accelerate the installation of refractory treatment capacity at the Leonora processing plant ahead of the Harbour Lights deposit.
St Barbara’s ongoing Pre-Feasibility Study (PFS) of growth initiatives at Leonora has identified open pit mining as the preferred development option for the Tower Hill deposit which has facilitated the declaration of a substantially increased Mineral Resource Estimate
The combined Mineral Resource estimate across Gwalia Underground, Tower Hill and the refractory Harbour Lights deposit provides the foundation for a low cost expansion of the existing Leonora processing plant from 1.4Mtpa to 2.1Mtpa.
About Bardoc Gold
Bardoc’s key asset is the Bardoc Gold Project located approximately 40 kilometres north of Kalgoorlie and approximately 180km by rail south of Leonora.
The project straddles the Goldfields Highway and Kalgoorlie to Leonora railway and covers 447km2 of granted Mining Leases and Prospecting Licenses. The main tenement package is focused on the Bardoc Tectonic Zone (the northern extension of the Boulder-Lefroy Fault), which is integral to the significant mineralisation seen at St Ives, New Celebration, the Golden Mile, Paddington deposits and those within the Bardoc Gold Project.
Bardoc’s project-wide Measured, Indicated and Inferred Mineral Resource is 54.6Mt at 1.8g/t Au for 3.07Moz of contained gold. The Bardoc MRE includes 8.4Mt at 3.7g/t Au for 988koz that may be amenable to underground mining methods.
The Bardoc Gold Project JORC (2012) Ore Reserve Estimate is 15.87 Mt at 2.0g/t Au for 1.01Moz of contained gold including 3.14Mt at 3.4g/t Au for 344koz at the Aphrodite underground deposit and 839kt at 3.6g/t for 98koz at the Zoroastrian underground deposit.
Bardoc has received Mining Proposal and Closure Plan approval for Zoroastrian from the Department of Mines, Industry Regulation and Safety (“DMIRS”) for the development of the underground deposit.
The Mining Proposal and Closure Plan for Aphrodite has also been submitted to DMIRS and will be amended as needed to suit St Barbara’s final mining approach for the underground deposit.
For further information please visit: https://stbarbara.com.au
