17 Feb MPS takes equity stake in Lucky Draw Tailings Project
MPS is pleased to announce that it has secured a earn-in agreement with privately owned Destiny Resources for the retreatment of gold tailings from their Lucky Draw tailings Project.
The Lucky Draw Tailings Project is located in central New South Wales, about 4 hours from Sydney and contains an Inferred to Measured Resource (JORC 2004) of 1.4 Million tonnes with an average gold grade of 0.47 g/t (approximately 21,400 oz gold). The average grade of the “fresh” portion of these tailings (which makes up approximately 46% of the total resource) is 0.70 g/t. High metallurgical recoveries have been observed in initial test work undertaken by MPS using their GlyCatTM Technology.
MPS will complete metallurgical testing and piloting work and deliver a feasibility study through a joint venture partner Encore Minerals, a company established in Australia to extract value from secondary sources such as mine tailings and waste stockpiles.
MPS Managing Director, Ivor Bryan, commented that this project represents another opportunity where we are bringing the GlyCatTM technology to market. It builds on recent extensive agitated tank piloting trials in Australia for a large mining operation, piloting of a Western Australian tailings retreatment project, and an overseas tailings retreatment project declared as reaching commercial production status. It confirms our belief that it is the only easy to implement alternative to cyanide on the market today. The difference on this project is that we are backing ourselves by investing directly and farming into the project.
Lucky Draw previously operated as a mining and gold processing operation in 1988 when gold prices were much lower and so there was a limit to what could be extracted economically. The opportunity provided by higher gold prices and our GlyCatTM technology combines to extract value from what was previously considered a waste. The technology has much lower operating costs than traditional cyanidation, has reduced risks associated with transport and use of cyanide, and produces an inert residual tailings (without cyanide detoxification) that will meet demonstrate higher Environmental Social and Governance (ESG) standards.