Coolgardie Minerals Ltd. agreed to sell its first 100,000 tonnes of oxide ore produced from the Geko gold mine at a fixed gold price of A$1,650 per ounce to Northern Star Resources Ltd.
The company recently kicked off mining at the Western Australian project, with first ore expected in early October.
The ore will be supplied at a minimum grade of 2.75 g/t and will be delivered in parcels of 10,000 tonnes to 25,000 tonnes over a six-month period between Oct. 1 to March 31, 2019.
Coolgardie said Sept. 6 that the deal is expected to generate over A$10 million in revenue for the company during this period.
The company noted that it is in negotiations for other toll milling options with the nearby gold mills for the remaining Geko ore treatment.