NMR and GDM Partner to Process 51,100oz Gold from Yellow Jack Project
Native Mineral Resources and Great Divide Mining have agreed to jointly develop and process ore from the Yellow Jack Gold Project at NMR’s Blackjack Plant, aiming to enhance regional gold production.
- Binding term sheet signed for unincorporated joint venture
- Yellow Jack project hosts 51,100oz inferred gold resource
- GDM responsible for mining and operational costs
- Profits shared equally after costs
- NMR continues processing own Blackjack and Far Fanning ores
Strategic Alliance to Unlock Gold Potential
Native Mineral Resources Holdings Limited (ASX – NMR) and Great Divide Mining Limited (ASX – GDM) have entered a binding term sheet to form a joint venture focused on mining and processing ore from GDM’s Yellow Jack Gold Project in northern Queensland. This collaboration leverages NMR’s recently refurbished Blackjack Plant, which resumed gold production earlier this year, positioning it as a key processing hub in the region.
The Yellow Jack project, located approximately 30 kilometres southwest of Greenvale, boasts a maiden inferred mineral resource estimate of 1.84 million tonnes at 0.86 grams per tonne gold, translating to about 51,100 ounces of contained gold. While initial drilling has only reached 70 metres depth, the resource remains open at depth and along strike, suggesting potential for further expansion.
Joint Venture Structure and Responsibilities
The unincorporated joint venture will see GDM undertake all mining activities at Yellow Jack, including haulage of ore to the Blackjack Plant. GDM will also cover all operational, infrastructure, staffing, and safety costs related to mining and processing. NMR will process the ore at Blackjack, continuing to handle ore from its own Blackjack and Far Fanning deposits concurrently.
Profits generated from gold production will be split evenly between the two parties after deducting respective costs. This arrangement underscores a balanced partnership where both companies share the upside while managing their own expenditures.
Outlook and Regional Significance
With a nine-month due diligence period and shareholder approvals pending, the joint venture’s definitive agreements remain subject to completion of these conditions. NMR’s Managing Director Blake Cannavo highlighted the opportunity to scale up the Blackjack Plant’s throughput and establish it as a central processing facility for the Charters Towers region. Meanwhile, GDM’s CEO Justin Haines emphasized the importance of securing a processing partner to accelerate Yellow Jack’s path to near-term cash flow.
Additionally, a third-party study is underway to optimize the Blackjack Plant’s processing capabilities, potentially increasing throughput and efficiency. This JV could mark the first of several agreements aimed at fully utilising the plant’s capacity, signaling growth prospects for both companies.
Overall, this partnership represents a strategic alignment of assets and expertise, potentially enhancing gold production and operational efficiencies in Queensland’s competitive mining landscape.
Bottom Line?
The NMR-GDM joint venture could redefine regional gold processing dynamics, but its success hinges on due diligence and regulatory approvals.
Questions in the middle?
- Will the due diligence uncover any operational or geological challenges that could delay the JV?
- How soon can mining and processing ramp up to deliver meaningful cash flow?
- What are the prospects for expanding the Yellow Jack resource beyond the current inferred estimate?