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Sep 2016 - Intermin Res Ltd

Intermin Resources Limited (IRC) –Generating cashflow from Teal, while Entering a JV with EGS to develop Goongarrie & Menzies

  • Although Intermin Resources Ltd (IRC) has a number of tenements in WA, its main focus areas are near Kalgoorlie (in the Teal Prospect, and Binduli JV[with Evolution]), and near Menzies (including Goongarrie). IRC has undertaken an innovative approach to developing Teal by profit sharing with a contractor in which the contractor removes the ~35m of waste to expose the orebody and from which IRC expects to potentially make ~A$10m profit.
  • The Teal gold discoveries (of Teal and possibly Peyes further south), close to Kalgoorlie were made by Placer in the 1990s, but not exploited due to the ~35m cover (which is common to the area), and the fact that like Kanowna Belle the orebody becomes refractory in the sulphide. IRC have entered into a toll treating arrangement with Zijin's Paddington plant, while Northern Star have expressing interest in treating the refractory sulphide.
  • Acquired in February 2016, Goongarrie is located ~40km south of Menzies and was last mined by Julia Mines (JLA) in ~1989 (~35koz @ 5g/t). The current plan is to cut-back Goongarrie Lady and truck the ore for toll-treatment at Eastern Goldfields' (EGS') refurbished plant at Davyhurst. The remainder of Goongarrie consisting of a number of pits over the old Goongarrie mining centre that now become part of the IRC/EGS JV.
  • The recent strategic JV with Eastern Goldfields (EGS) involves EGS farming-in to IRC to earn up to a 65% interest in its Goongarrie and Menzies projects, and includes a BFS to possibly have EGS' second operational plant located at Menzies to treat ore from Goongarrie, Menzies and EGS's own planned mine at Mt Ida.
  • However, the main target for IRC is the historic Menzies Goldfield, which was last toll-treated through the Paddington plant by Goldfields in 1999, in which the main historical mines were exploited by open-cut. Alas tailings and backfill have been pushed into some of those pits restricting further extraction. However, with ~ 2 main lodes over the ~10km strike length, there appears to be a number of historical workings between the mined pits, that could provide material feed to a plant, such as from the Pericles area.
  • The old Menzies Goldfield was renowned for its spectacular near surface grades (and not just supergene) that were mined in the early 1900s such as ~2oz/t to 5oz/t. The open-cut historical workings averaged ~2.5g/t (although the grades appear to have been higher at possibly ~3g/t to 4g/t [based on historical reports], as it was a toll-treatment arrangement).

    • Other Key Points:

  • IRC has been able to start a new direction towards gold production and profitability, based on a higher gold price and lower costs, combined with management changes such as Jon Price joining as MD in Jan 2016, and Peter Bilbe as Non-Exec Director in June 2016.
  • Little attention appears to have been made of the EW structures at Menzies, which opens up another area of potential mineralisation.
  • The Menzies goldfield has been in existence for some time, & like many of the historical Australian goldfields has gradually been forgotten - especially its richness. Most of the workings and drilling is shallow, offering significant potential at depth.
  • Infrastructure appears to be very good for IRC's Teal and Menzies Projects, with established dirt haul roads and main roads, abundant water, and proximity to either Kalgoorlie or Menzies.

Read the Full Report

Sep 2016 - Intermin Resources Limited

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  • Written by: Keith Goode
  • Monday, 19 September 2016