Macro Mining Services Locks in Profit Share Deal to Unlock Gold Tailings at Paris Mine

Profit Share Deal Targets Untapped Gold Tailings

Macro Mining Services, a wholly owned subsidiary of Macro Metals Limited (ASX:M4M), has signed a mining services and profit share agreement with Austral Pacific to evaluate and monetise gold tailings and stockpiles at the Paris Gold Mine in Western Australia. The deal sets the stage for Macro Mining Services to leverage its operational expertise to unlock value from historical mining waste, with profits split evenly after Macro recovers its project expenses.

The Paris Gold Mine, located about 100km southeast of Coolgardie, hosts significant gold-bearing tailings and stockpiles from previous mining campaigns. Historical air core drilling by Gold Fields Australia revealed intercepts such as 8m at 1.97g/t Au and 6m at 2.5g/t Au in the South West Tailings Dam, while the North East Tailings Dam showed even higher grades up to 4.66g/t Au over 3m. Recent bulk sampling by Austral Pacific using excavators returned grades consistently above 2g/t Au, reinforcing the potential economic value of these tailings.

Systematic Feasibility Study Underway

Macro Mining Services has already initiated toll treating discussions with third-party mills and commenced a comprehensive feasibility study. This includes reverse circulation (RC) drilling using photon analysis to obtain more representative gold grades, confirmatory metallurgical testing, and bulk density analysis aimed at producing a mineral resource estimate. The company also plans to evaluate the stockpiled waste rock for civil engineering applications, with prior test work indicating suitability as road base and rail ballast, potentially opening additional revenue streams.

Metallurgical test work to date has been encouraging. Recent column leach tests achieved gold recoveries up to 89% from oxide tailings, with further gravity and cyanide leach tests indicating recoveries approaching 98% after 27 days for the upper oxide layers. These results suggest a viable processing pathway, although the project remains at a preliminary stage with no JORC-compliant resource or reserve estimate yet established.

Commercial Terms and Strategic Fit

Under the agreement, Macro Mining Services will first recoup all costs incurred in feasibility, technical, and mining services from project revenue before sharing profits equally with Austral Pacific. This structure effectively free carries Austral Pacific through the development phase, aligning incentives for both parties to maximise project returns.

Macro Managing Director Simon Rushton highlighted that the agreement builds on a successful history of earthworks and rehabilitation services at Paris Gold Mine, reflecting a collaborative relationship with Austral Pacific. The deal fits within Macro's broader strategy to expand its mining services footprint in Western Australia's gold sector, focusing on profit share and project equity opportunities beyond traditional service contracts.

This initiative complements Macro's recent progress in other resource projects, following its $5.3 million budget approval for the Extension Iron Ore Project, underscoring the company's diversified growth approach across mineral commodities and mining services.

Technical and Operational Challenges Ahead

While historical data and preliminary test work are promising, significant uncertainties remain. The project is still in the scoping and feasibility phase, with no definitive mining decision made. Key risks include metallurgical performance variability, capital and operating cost estimates, regulatory approvals, and securing processing arrangements. The precise volumes, grades, and recoveries will require confirmation through ongoing drilling and metallurgical programs.

Macro Mining Services will also need to navigate logistical and environmental considerations involved in reclaiming and processing tailings and stockpiles, as well as developing markets for the civil engineering products derived from waste rock. The success of toll treating arrangements or the potential establishment of on-site processing facilities will be critical to project economics.