Carbine Resources Ltd. signed a binding off-take agreement with Chinese trading company IKing International Ltd., which guarantees a floor price for pyrite concentrate produced at the Mount Morgan project in Queensland, Australia.
According to an Aug. 2 statement, the floor price will be negotiated on an annual basis, and the agreement applies to 85% of the concentrate produced in the first three years.
The company refrained from divulging the full pricing details of the deal for reasons of confidentiality but said it expects to receive at least US$50/tonne for the first two years and over US$70/tonne for the remaining years.
Carbine noted that the expected price will impact the all-in sustaining cost of A$549/oz calculated in a Dec. 8, 2016, feasibility study.
The Mount Morgan tailings project has an estimated ore reserve of 9.9 million tonnes, with an average grade of 1.19 g/t of gold and 0.16% copper for 380,000 ounces of contained gold and 16,000 tonnes of contained copper.