Early Cash Flow Hinges on Drilling Results at Mt Fisher Stockpile JV
High-Tech Metals has signed a joint venture with SSH Mining to drill, test, and sell historic low-grade gold stockpiles at Mt Fisher, aiming for early cash flow and project advancement.
- Joint venture signed between High-Tech Metals and SSH Mining over Mt Fisher stockpiles
- Stockpiles estimated at 144,000 to 195,000 tonnes grading 0.80 to 1.20 g/t gold
- Profit share agreement allocates 85% of net proceeds to HTM, 15% to SSH Mining
- RC drilling and metallurgical testing scheduled to start July 2025
- Potential toll processing arrangements being negotiated with nearby plants
A Strategic Partnership to Unlock Value
High-Tech Metals Limited (ASX: HTM) has taken a significant step towards monetising its Mt Fisher Gold Project by entering into a joint venture agreement with SSH Mining Australia Pty Ltd, a subsidiary of SSH Group Ltd (ASX: SSH). The partnership focuses on evaluating and commercialising historic low-grade gold stockpiles left from mining operations in the late 1980s.
The agreement leverages SSH Mining’s operational expertise to manage drilling, metallurgical testing, haulage, and sale of the stockpiled ore, while High-Tech Metals retains the lion’s share of the profits. This collaboration aims to unlock near-term cash flow that could fund further exploration across HTM’s portfolio.
The Stockpiles: Size and Potential
The stockpiles at Mt Fisher are estimated to contain between 144,000 and 195,000 tonnes of ore, with gold grades ranging from 0.80 to 1.20 grams per tonne. These figures are based on historical sampling and exploration targets rather than confirmed mineral resources, underscoring the need for further drilling to validate the grade and tonnage.
Previous mining at Mt Fisher produced around 30,000 ounces of gold at a higher grade, but the low-grade material was stockpiled rather than processed. The JV’s upcoming reverse circulation (RC) drilling program, set to commence in July 2025, will provide critical data to support a maiden mineral resource estimate and inform metallurgical test work.
Profit Sharing and Operational Plans
The profit-sharing arrangement is notably favourable to High-Tech Metals, with 85% of net proceeds from the project allocated to HTM and 15% to SSH Mining. SSH Mining will be reimbursed for its services at cost plus a 10% margin, ensuring transparency and alignment of interests.
In parallel with drilling, metallurgical testing will assess gold recovery rates, which previous studies suggest could reach up to 95% under optimal conditions. Discussions are also underway with nearby processing plants to secure toll treatment options, which could streamline operations and reduce capital expenditure.
Looking Ahead
The joint venture agreement is contingent upon High-Tech Metals completing its acquisition of the Mt Fisher Project from Rox Resources Limited, expected imminently. Following the drilling and test work scheduled for Q3 2025, a decision on project commencement will be made, potentially marking the start of gold production from these historic stockpiles.
Both companies express optimism about the venture’s potential to deliver early cash flow and demonstrate a low-capex approach to mining, which could serve as a model for unlocking value from underutilised assets in the region.
Bottom Line?
As drilling and testing progress, the Mt Fisher stockpiles could soon transform from dormant waste to a valuable revenue stream for High-Tech Metals.
Questions in the middle?
- Will the upcoming drilling confirm sufficient grade and tonnage to justify commercial production?
- What terms will be finalised for toll processing, and how will they impact project economics?
- Could this JV model be replicated across other underutilised stockpiles in the region?
