The deal outlines parcels of 20,000t to 30,000t per month for 36 months. Classic will oversee drilling of deposits to a level compliant with JORC, as well as performing initial metallurgical work, securing approvals and compiling an economic analysis.
Once that is complete, Tianye will receive the deposit for review and will have the chance to perform its own analysis. Tianye, then, can make an offer under either a profit-sharing plan or purchase scenario to process the ore.
“Although the company’s primary focus remains growing the resource and mining inventory via systematic exploration, this MoU is a much-welcomed development,” Classic CEO Dean Goodwin said, noting that because Forrestania is so close to its Marvel Loch plant the deposits are no longer stranded.
“We can start looking at near-term mining opportunities to bolster the cash flow of the company.”
Tianye is the owner of the Southern Cross Operation, which includes the now-refurbished Marvel plant.
Forrestania’s existing JORC resource estimate is 5.3 million tonnes at 1.39g/t (240,000oz).
