Tartana Minerals Limited is pleased to announce today that it is in deep discussions with Mt Garnet Mineral Finance Pty Ltd (Mortgagee in Possession of the assets of Aurora Metals Limited (in liquidation) ACN 126 634 606 and associated entities) (“MGMF”) on a potential agreement which would authorize the Company to the Mungana Processing Plant.
Tartana’s Managing Director, Dr Stephen Bartrop, commented on this potential agreement:
“We are excited to be working with MGMF to explore an opportunity for Tartana to access the Mungana Processing Plant and other assets controlled by MGMF. Tartana has spent the last three years defining both the open pit copper and zinc resources at our Tartana mining leases along with the metallurgical testwork necessary for the potential processing in a conventional flotation plant such as the Mungana Processing Plant.
“While the Mungana plant has experienced a chequered history largely stemming from unsustainable ore supplies from underground mining, this impediment is removed with the Tartana open pit which we believe could achieve production on a more sustainable basis.”
Summary of Potential Agreement
Under the potential arrangement, Mt Garnet Mineral Finance (MGMF) would grant Tartana access to mine its copper ore and transport it 25 km to the Mungana Processing Plant for processing into copper sulphide concentrate. The plant, with a 600,000-tonne annual capacity, has been idle since Aurora Metals entered administration in 2023.
Tartana has engaged experienced engineers, including former Mungana managers, to assess the plant’s condition and refurbishment requirements. While the initial focus is on processing Tartana ore, there is also potential to restart mining at the nearby King Vol mine, which could integrate with Tartana’s Queen Grade zinc deposit. Additional opportunities exist at the Mungana mine, though its ore presents metallurgical challenges.
The arrangement would allow Tartana to utilize the Mungana tailings dam, which has sufficient capacity for several years, with additional approved cells available. Tartana and MGMF aim to finalise a Heads of Agreement by 31 March 2025, with Tartana covering 50% of the plant’s care and maintenance costs from 1 February 2025, capped at $100,000 per month.
However, significant due diligence is still required, and there is no guarantee an agreement will be reached. If the arrangement does not proceed, Tartana may seek reimbursement for its care and maintenance contributions.
Today’s ASX Announcement (3rd February 2025)
Tartana Minerals advances towards 600,000 tpa Mungana plant deal, plans copper production growth (Small Caps, 3rd February 2025)
Quarterly Activities ASX Announcement (31st January 2025)