Barra Resources takes back Birthday Gift
ASX-listed junior Barra Resources has bought the “Birthday Gift” gold mine near Kalgoorlie in Western Australia from Kidman Resources after originally selling it back in 2013.
The deal will see the acquisition of Kidman’s subsidiary Coolgardie Mining Company for $121,000 plus a royalty of $20 per ounce for first 55,000 ounces produced from the mine.
In 2013, the company (ASX:BAR) sold the mine to private outfit Blue Tiger Mines while retaining exploration and mining rights over the remainder of the tenement.
As well as the Birthday Gift underground mine – which produced more than 400,000 ounces of gold to date – Barra will also take back whole ownership of the highly regarded Burbanks mining licence which hosts the Main Lode deposit.
Barra has been exploring under an exclusive rights agreement to certain parts of the mining licence while not directly owning the licence or the Birthday Gift deposit.
Birthday Gift has a JORC resource mineral estimate of 95,400 ounces of gold including 35,850 categorised as indicated.
JORC compliance refers to the mining industry’s code for reporting exploration results, mineral resources and ore reserves, managed by the Australasian Joint Ore Reserves Committee.
The deal gives Barra complete access to potential shallow and depth mineralisation including the existing decline access which may prove pivotal to any future mining operation at the nearby Main Lode deposit, the company said.
Kidman offloaded the mining licence as part of its divestment of non-core assets as it continues to focus on its lithium joint venture activities at Mount Holland.
Shares in Barra were last trading 5 per cent higher at 6.2c in early afternoon trade. Company has a market cap of around $26 million.