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BIM Metals is expected to begin work on site this month in a project to extract gold from historical tailings dam stockpiles at Tick Hill.

Tenement holder Carnaby Resources announced that it had received the permitting required for the operation.

The company in August reached an agreement to sell the tailings stockpiles in a deal worth about $6 million with private mining and processing entity BIM Metals.

BIM Metals will transport the material to the Lorena gold site for processing.

Carnaby said first ore extraction from the tailings dam stockpile was anticipated to occur by the end of the month.

In addition to various upfront payments and installments to be received upon the permitting and start of ore extraction, Carnaby is in line for 5 per cent royalty payments on gold sales from the Tick Hill stockpiles.

“We could not be in a better position than we are in right now, having monetised the Tick Hill tailings dam stockpile during record gold prices and being fully funded to aggressively explore and advance our highly prized Strelley (Western Australia) and Tick Hill gold targets,” Carnaby Resources managing director Rob Watkins said.

“We look forward with great anticipation to the results from the drilling programs that will commence over the coming days.”

Carnaby plans an optimised open pit cutback at the existing 70m deep Tick Hill mine, using all-wheel drive truck and shovel operations.

Results released mid-year from a Preliminary Feasibility Study and Maiden Ore Reserve confirmed a viable mining and toll treatment project.

Tick Hill, 110km south-east of Mount Isa, produced 511,000 oz of gold, with an ore grade of 22.5g/t, when it was mined by MIM Holdings from 1991-95.

Carnaby’s Tick Hill gold project and broader exploration package covers 323q km within the Mount Isa Inlier.

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