Forrestania Resources signs ore deal for 400,000 tonnes
- Forrestania Resources executed a binding ore purchase agreement with Star Minerals for up to 400,000 tonnes of gold-bearing ore.
- Initial ore haulage from the Tumblegum Project starts on Oct. 23, boosting local processing operations.
- The deal grants Forrestania exclusivity over high-grade ore to support its broader gold production hubs.
Forrestania Resources (ASX:FRS) signed a binding agreement with Star Minerals (ASX:SMS) to purchase and process up to 400,000 tonnes of gold-bearing ore from the Tumblegum Project over a 24-month term.
The new commercial framework provides guaranteed mill feed directly following Forrestania’s preparations to restart gold production at its regional processing hubs.
"Tumblegum is a well-known gold project within Western Australia's Eastern Goldfields region, and this agreement provides Forrestania with the opportunity to evaluate and potentially process up to 400,000 tonnes of third-party ore over the near to medium term," said Forrestania Resources Executive Chairman David Geraghty.
The agreement secures exclusivity over ore meeting an agreed minimum grade threshold, with pricing determined by ore grade, metallurgical recovery, and prevailing gold prices.
Following the announcement, the Forrestania Resources share price was unchanged at $0.34.
Forrestania Resources operates an emerging gold processing strategy in Western Australia centred on its key infrastructure assets.
