- Binding OPA for gold-bearing ore from Rockland project
- Rockland exciting ongoing gold discovery with open ended gold mineralisation
- Drilling continues to extend the gold mineralisation,
- Ore can be processed at FRS’s Lake Johnston or Edna May processing facilities
Dundas Minerals (ASX: DUN) has entered into a binding ore purchase agreement (OPA) with Forrestania Resources (ASX: FRS) for the purchase and processing of eligible gold-bearing ore from the company’s Kalgoorlie Gold project in Western Australia.
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The OPA sets out the commercial framework under which FRS may purchase eligible ore from Dundas’ 100% owned Rockland gold project for processing at FRS’s Lake Johnston or Edna May processing facilities.
The OPA gives Dundas a potential pathway to monetise suitable ore through existing processing infrastructure, without the need to fund a standalone processing plant.
“We are pleased to develop a relationship with Forrestania. This agreement gives Dundas an immediate route to market for Rockland ore through Forrestania’s processing plants, without the cost, time and dilution of building our own and solves a mill constraint challenge facing many Goldfields miners,” MD, Jonathan Downes, said.
“Our job now is now to drill. The rig is returning to Rockland, where the mineralisation remains open at depth and on strike with mineralisation identified over a strike length of 1 kilometre on this exciting discovery.”
Key terms of the OPA are:
• Term and tonnage: an initial term of 24 months, up to a maximum of 750,000 tonnes, with ore processed in campaigns of between 40,000 and 100,000 tonnes.
• Processing facility: ore is delivered to FRS’s Lake Johnston or Edna May processing facility, as nominated by FRS.
• Pricing: the formula uses the grade of Dundas’ ore against a base grade of 1.45 g/t Au at a set gold price, adjusted for the prevailing gold price.
• Haulage: Dundas arranges and pays for haulage of ore to the nominated facility, subject to the transport-cost exit described below.
• Plant access fee: a one-off fee of $50,000 on commencing production.
Following its acquisition of the Edna May gold project the Edna May processing facility near Westonia, FRS has announced that it is refurbishing both plants for restart .
Rockland is located at the southern end of the Kalgoorlie Gold Project corridor, approximately 40km north of Kalgoorlie, subject to a 1.5% net smelter return royalty.
Drilling has outlined a oner km zone of gold mineralisation in stacked, east-dipping shoots. Earlier results include 3.0m ay 6.94 grams per tonne (g/t) gold from 138m in June 2026,
Dundas will continue to work towards a maiden mineral resource estimate for Rockland and undertake metallurgical testwork, haulage costings and delivery logistics to assess eligible ore under the OPA.
DUN was up 2.08% to 4.9¢. Mkt cap $11.10M.
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