West Coast Silver and Artemis Resources have signed a non-binding MOU to assess processing Elizabeth Hill silver ore at Artemis’s Radio Hill plant, aiming to fast-track development while managing capital costs.
- Non-binding MOU signed between West Coast Silver and Artemis Resources
- Assessment of Radio Hill plant’s suitability for processing Elizabeth Hill ore
- Exchange of technical, metallurgical, logistical data and joint site visits planned
- Radio Hill plant currently on care and maintenance but can be rapidly recommissioned
- Future toll treatment agreement contingent on positive technical and commercial outcomes
Strategic Collaboration in the Pilbara
West Coast Silver Limited (ASX, WCE) and Artemis Resources (ASX, ARV) have taken a significant step toward potentially unlocking value from one of Australia’s highest-grade silver deposits. The two companies have executed a non-binding Memorandum of Understanding (MOU) to jointly evaluate whether Artemis’s Radio Hill Processing Plant can economically process ore from West Coast Silver’s Elizabeth Hill Silver Mine, located in the Pilbara region of Western Australia.
The Elizabeth Hill project boasts a rich history, having produced 1.2 million ounces of silver from just under 17,000 tonnes of ore at exceptionally high grades. However, previous mining ceased in 2000 due to low silver prices at the time. With silver prices and market conditions having evolved, West Coast Silver is keen to fast-track development while maintaining capital discipline, making the prospect of toll treatment at an existing nearby facility an attractive proposition.
Technical and Commercial Assessment Underway
The MOU outlines a cooperative approach where both parties will exchange detailed technical, metallurgical, logistical, and engineering information. This includes sharing plant configuration details and conducting joint site visits and technical assessments to determine the feasibility and economics of processing Elizabeth Hill material at Radio Hill.
Radio Hill is a fully permitted nickel-copper concentrator with a capacity of 425,000 tonnes per annum, located just 35 kilometres south of Karratha. Although currently on care and maintenance, the plant can be rapidly recommissioned, offering a potentially cost-effective processing solution without the need for West Coast Silver to build new infrastructure.
Non-Binding Agreement with Eyes on Future Opportunities
Significantly, the MOU is non-binding and does not create any commercial obligations or joint ventures. Any future toll treatment or commercial arrangement will depend on a successful technical and commercial evaluation, followed by negotiation of a definitive binding agreement. Both companies will bear their own costs during this initial phase, and confidentiality of exchanged information is strictly maintained.
West Coast Silver’s Executive Chairman, Bruce Garlick, highlighted the strategic importance of this collaboration, emphasizing the alignment with their goal to accelerate project development while controlling capital expenditure. Meanwhile, Artemis Resources’ Executive Director, Joszef Patarica, noted the versatility of the Radio Hill plant and the opportunity to support a high-grade silver project in the region.
Looking Ahead
As technical teams from both companies commence data sharing and detailed assessments, the market will be watching closely for updates. Should the evaluation prove positive, this collaboration could pave the way for a cost-efficient processing pathway for Elizabeth Hill ore, potentially unlocking significant value for both parties and advancing development timelines.
Bottom Line?
The next few months of technical assessments will be critical in determining whether this collaboration can translate into a commercially viable processing solution for Elizabeth Hill’s high-grade silver ore.
Questions in the middle?
- Will the Radio Hill plant require significant modifications to process silver ore from Elizabeth Hill?
- What are the projected capital and operating costs if a toll treatment agreement proceeds?
- How might this collaboration impact West Coast Silver’s timeline to production and overall project economics?