TWIN HILLS GOLD MINE (60%)
On 2nd July 2009, NQM and its Joint Venture partner, Heemskirk Consolidated, signed agreement to purchase the Twin Hill gold mine from BMA Gold Ltd for $1.75 million (100%).
Twin Hills was closed in 2007 by then owners BMA Gold. The mine has a significant drill defined mineralisation target in the order of approximately 800,000 to 850,000 tonnes at 7.0 to 7.5g/t of gold. The potential quantity is conceptual in nature, there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. These numbers should be regarded as conceptual as the Joint Venture partners are currently evaluating existing data which, while JORC compliant, will be subject to review by the new owners before public release.
Capital expenditure is minimal as the project has ready underground access, with a significant proportion of level and decline development already in place. It is fully permitted.
The joint venture partners will embark on a feasibility study based on trucking ore to Pajingo for treatment. This may include additional drilling and subsequent modelling to suit a revised mine plan as a satellite mine. Trials in June have confirmed that the Pajingo mill could process up to 500,000tpa on a single mill, thus allowing approximately 200,000tpa to be brought in from new sources.
The consideration for the acquisition (100%) is to be made in a number of tranches.
| Signing Fee | $200,000 | Date of signing |
| Tranche1 | $300,000 | Completion Date |
| Tranche2 | $500,000 | Completion Date plus 3 months |
| Tranche 3 | $750,000 | Completion Date plus 6 months |
The completion date is contingent upon primarily the assignment of the tenements.
The acquisition is another step in NQM’s strategy of adding value to Pajingo enroute to become a mid-tier gold producer.
