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3D Resources Ltd

3D Resources to acquire interest in premier Australian gold belt

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Perth-based 3D Resources (ASX: DDD) has secured an opportunity to obtain a free carry participation in the acquisition of St Barbara’s (ASX: SBM) Southern Cross Operations, located in one of Australia’s premier gold belts.

Hong Kong-listed international mining company China Hanking Holdings (3788: HKG) has finalised an agreement to acquire the assets of the Southern Cross Operations for over $30 million.

Under its agreement with Hanking, 3D Resources is entitled to a 15% net profit interest from all gold production from the Southern Cross Operations and from any toll treatment from outside tenements using the Marvel Loch gold processing plant.

Importantly, the profit share agreement between 3D Resources and Hanking allows 3D Resources to participate in this major gold acquisition and development project without having to raise the substantial capital required to make the acquisition or complete the development of the mine.


Highly prospective greenstone belt

The Southern Cross Operations comprise a package of tenements that cover around 120 kilometres of the highly prospective Southern Cross greenstone belt.

The belt has historically produced in excess of 8 million ounces of gold and currently holds JORC reported Measured, Indicated and Inferred Resources of about 2.4 million ounces of gold.

The Southern Cross gold belt contains resources of 20.6 million tonnes at an average grade of 3.6 grams per tonne (g/t) gold, of which more than 50% is accessible via open cut development.

The acquisition also includes the Marvel Loch processing plant that was recently placed on care and maintenance by St Barbara.

The plant provides a central processing facility to all of these resources and most are serviced by an internal haul road for trucking ore directly into the mill.

Internal assessment of the Southern Cross Operations by 3D Resources has shown that most of the 2.4 million ounces in resources are commercially viable at the current gold price.

The company plans to optimise the profitable development of these resources to feed the Marvel Loch plant.

Subject to feasibility, Hanking is committed to spend a minimum of $50 million on mine development which is designed to re-establish production over the next 12 months.

This program of development aims to build gold production from historic levels of around 100,000 ounces per year to around 180,000 to 200,000 ounces per annum through fully utilising the Marvel Loch plant processing capacity of 2.4 million tonnes per annum.


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