Spartan Resources (ASX:SPR,OTC Pink:GYYSF) said it has received approvals from the Department of Energy, Mines, Industry Regulation and Safety, as well as the Department of Water and Environment Regulation, for the mining and processing of underground ores at its flagship Dalgaranga gold project.
In a press release on Monday (November 25), the company said that the approvals will facilitate Dalgaranga's transition from development to full-scale mining and production activities.
“On behalf of the Spartan team, I would like to thank the regulatory agencies for the efficient and pragmatic way in which they oversaw our pre-submission consultation period, clearing the way for a seamless and expedient approval process,” said Simon Lawson, interim executive chair of the company.
Located 475 kilometres northeast of Perth and approximately 65 kilometres northwest of Mount Magnet in Western Australia, Dalgaranga was previously an open-pit mine. However, Spartan shifted its plans to focus on underground mining following a series of high-grade discoveries, including the Never Never and Pepper deposits.
The company said in July that the site has a mineral resource estimate of 16.1 million tonnes at 4.79 grams per tonne of gold for 2,482,200 ounces across the Never Never and Pepper sites, plus an "other" category.
Dalgaranga was commissioned in 2018, and produced 71,153 ounces of gold during the 2022 financial year. It was placed on care and maintenance in November 2022 to pave the way for a new strategic operating plan and financial structure.
Once online, Spartan believes the operation will create new jobs and boost communities in the Murchison region.
At the end of September, intermediate royalties firm Osisko Gold Royalties (TSX:OR,NYSE:OR) entered into a binding agreement with Spartan to acquire a 1.8 percent gross revenue royalty on Dalgaranga, as well as a 1.35 percent gross revenue royalty on further regional exploration licenses in proximity to the site.
Under the agreement, Spartan has the ability to buy back up to 20 percent of the project royalty and 20 percent of the exploration royalty for a total of AU$3.15 million until February 2027.
The transaction is subject to the approval of the Australian Foreign Investment Review Board.
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
