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Thursday, 25th May 2006 (4764 views)

Australian-based firm Mintails is snapping up the Mogale Gold treatment operation, according to reports on Business Day.

The company will buy out the mine and tailing operations from its existing limbo state under 'judicial management', after the previous owners, Mogale Gold, were unable to keep it going.

Set up using funds from the South African Export Development Fund, the mine was valued at R25 million for the rights to reclaim and process gold.

However, after Mogale saw its projections for production fail to materialise, the firm relinquished its rights.

Now Mintails, an Australian-listed company, is planning to reactivate the mine at a cost of up to A$40 million to ensure full output, potentially producing 120,000oz of gold per year.

Progress on this is expected to be good, although the Mintails board is planning to review the site before pushing ahead with the second phase of the process.

 

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