Tartana Advances Talks to Unlock 600,000 Tonne Mungana Processing Plant Capacity

Strategic Access to Processing Capacity

Tartana Minerals Limited (ASX:TAT) has revealed it is in advanced discussions with Mt Garnet Mineral Finance Pty Ltd (MGMF) to secure access to the Mungana Processing Plant, a facility with a nameplate capacity of 600,000 tonnes per annum. This move could provide Tartana with a critical processing hub for its copper ore, potentially transforming its operational scale and efficiency.

The Mungana plant, currently under the control of MGMF following the liquidation of Aurora Metals Limited, has been inactive since April 2023. Tartana’s Managing Director, Dr Stephen Bartrop, expressed optimism about the opportunity, highlighting that the open pit copper resource at Tartana could provide a more sustainable ore supply than previous underground operations that challenged the plant’s viability.

Resource and Operational Synergies

Tartana’s existing copper resource stands at approximately 45,000 tonnes contained copper at 0.45% grade, with ongoing drilling programs designed to expand this to over 100,000 tonnes. The company plans to truck ore 25 kilometres from its mining leases to the Mungana plant for processing into copper sulphide concentrate.

Beyond copper, Tartana and MGMF are exploring the potential to recommence mining at the nearby King Vol underground mine, historically the primary ore source for the Mungana plant. The King Vol mine, although currently flooded and requiring rehabilitation, sits close to Tartana’s Queen Grade zinc deposit, presenting opportunities for integrated development that could enhance project economics.

Due Diligence and Future Prospects

The proposed arrangement remains conditional on various approvals and due diligence processes. Tartana has engaged a team of engineers, including former Mungana plant managers, to assess refurbishment and restart requirements. The company has committed to funding half of the care and maintenance costs of the plant during the negotiation period, capped at $100,000 per month.

While the Mungana plant has a history of operational challenges linked to ore supply, Tartana’s open pit resource and positive metallurgical testwork, showing approximately 90% copper recovery and significant grade improvements through ore sorting, suggest a more stable production profile could be achievable.

Additional assets under MGMF’s control, including the Mungana underground mine and several undeveloped projects, offer further exploration and development potential, though these require careful evaluation due to metallurgical complexity and infrastructure needs.

Regional Development and Market Impact

The Chillagoe region, where Tartana operates, stands to benefit from renewed mining activity and processing capacity. The Mungana plant’s connection to the Queensland electricity grid and existing worker accommodation village provide logistical advantages. If the arrangement proceeds, Tartana could establish a decade-long mining and processing operation, supported by resource expansion and integrated project development.

However, the company cautions that formal agreements are yet to be finalized, and the outcome depends on successful negotiations and regulatory approvals. Investors should watch for updates on the Heads of Agreement expected by the end of March 2025 and results from ongoing drilling campaigns.