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Maroon Gold has signed an agreement with Laneway Resources to mine the Agate Creek project and process up to 100,000 tonnes of high-grade ore through its Black Jack plant outside Charters Towers.

The deal will see Maroon to undertake and meet the costs of the mining, transportation and processing of ore under project owner Laneway’s supervision.

Gold produced will be paid 60 per cent to Laneway and 40 per cent to Maroon above 3.5 g/t gold head grade with the initial 3.5g/t produced to be retained by Maroon.

The Agate Creek gold project is located about 40km south of Forsayth and 60km west of Kidston in North Queensland.

Laneway chairman Stephen Bizzell described the deal with Maroon Gold as a significant milestone – providing the opportunity to mine and process ore from Agate Creek on a commercial scale, with minimal capital requirements for Laneway.

“The agreement establishes the basis for open-cut mining, transport and processing operations of high grade ore from the Agate Creek gold project upon successful grant of the Agate Creek Mining Lease,” he said.

“The Mining Lease Application (MLA 100030) that Laneway lodged in February 2015 with Queensland’s Department of Natural Resources and Mines, covers the near surface high-grade Sherwood and Sherwood West prospects, as well as areas for all necessary infrastructure to support mining operations.

“Progress is well advanced on the remaining requirements for the grant of the mining lease, with the company expecting these to be completed in the near term.”

Mr Bizzell said commissioning works were being finalised at the Black Jack plant, which has the capacity to process up to 340,000tpa.

Western Australia-based Maroon Gold bought the Black Jack gold processing site from Citigold Corporation late last year for $12 million.

Agate Creek gold deal