ASX-listed Terramin Australia has signed an agreement with Kitticooler to acquire 100% of Private Mine No 53 (PM 53), near Palmer, South Australia.

Private Mine No 53 consists of the historic Kitticoola copper-gold mine that was operated intermittently between 1846 and 1971.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Between 1846 and 1869, it operated as a copper mine, producing 7,000t of ore at an estimated average grade of 2.25% copper.

Gold potential at the mine was identified in 1890. The mine intermittently produced 30,000t of ore at an average recovered grade of 5.4 g/t gold.

Kitticoola is situated 2.5km south of Palmer and around 62km from Terramin’s Angas Processing Facility (APF) at Strathalbyn.

Terramin Australia CEO Richard Taylor said: “Terramin is excited about the opportunity of adding potential production from Kitticoola to its Bird-in-Hand Project in the Adelaide Hills. PM53 is fairly unique in that it remains an approved mine (subject to the grant of updated environment approvals) that has not operated since 1971.”

“Operating the two projects would potentially increase local employment from the forecast 140 roles already earmarked for Woodside and Strathalbyn.”

Kitticoola, which has had ‘only limited modern exploration’ exposure, is expected to present significant synergies with Terramin’s other assets.

Taylor further added: “If successful, exploration would provide additional feed to processing planned for the Angas facility at Strathalbyn. Operating the two projects would potentially increase local employment from the forecast 140 roles already earmarked for Woodside and Strathalbyn.”

The deal with KHP on PM 53 offers Terramin to gain exploration rights and potential future mining rights over Kitticoola, provided it pays land access fees and a sliding scale royalty.

As per the agreement, Terramin will have to pay 2% royalty for all gold produced from the Kitticoola tenement; 2.5% NSR royalty if certain government fiscal concessions are available to PM53; 3% NSR, applicable in either cases, if the London Metal Exchange (LME) gold price is greater than A$1800 per ounce or a larger than expected resource is defined.