Minerals 260 managing director Luke McFadyen said the company will pursue a central hub model at Coolgardie, following the strategy that turned Genesis Minerals into a long-life gold producer.
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Minerals 260 managing director Luke McFadyen said the company plans to replicate the Genesis Minerals hub strategy by centralising ore processing at Coolgardie.
The model, pioneered by Genesis Minerals at its Laverton operations, uses a central mill to process ore from multiple nearby deposits, including third-party feed. McFadyen told Business News the approach could lower costs and extend mine life for the company's Coolgardie project.
Minerals 260 holds a portfolio of gold assets around Coolgardie, about 40 kilometres west of Kalgoorlie in Western Australia. The company has been drilling to define a resource base that could feed a central processing facility.
Genesis Minerals, now part of Genesis Minerals Ltd (ASX: GMD), built its hub around the Gwalia mine and the Laverton mill, processing ore from its own pits and from neighbouring producers. The strategy helped Genesis turn a collection of small deposits into a longer-life operation.
McFadyen said the Coolgardie region has multiple small gold deposits that lack their own processing infrastructure. A central hub could unlock those ounces by providing a cost-effective milling option.
The company has not disclosed a timeline for a final investment decision. McFadyen said the immediate focus is resource drilling and feasibility work.
Minerals 260 shares closed at A$0.18 on Friday, valuing the company at about A$45 million. The stock is down 12% this year.
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