Projects & Royalties

Mungana

Project: Mungana
Commodity: Gold
Royalty: 3% of Au (>300koz Au)
Subsidiary: Altus Royalties Holdings Ltd
Location: Australia
Deposit Style: Structurally disrupted sequence of limestones, cherts, clastic sediments and mafic volcanics
Key Attributes: Mungana Mine is located adjacent to the Mungana Processing Plant
Asset Stage: Care and maintenance
Results: 237koz Au, 36kt Cu, 28kt Pb 7.5Moz Ag, 164kt Zn
Next Phase of Work: Production restart
Deal Partner: Consolidated Tin Mines Ltd
Deal Terms: Acquired from Newcrest Mining

Project Overview

The Mungana tenements are operated by Consolidated Tin Mines (CSD)/Aurora Metals Ltd, after acquisition from Auctus Resources, and are located ~200km west of Cairns in Queensland, Australia. The tenements are part of the Chillagoe Base and Precious Metals Project, located adjacent to the Mungana Processing plant. The original mining tenements are Shannon (ML 4910), Zillmanton (ML 4911), Shannons West (ML 4921), Griffiths 1 (ML 4928), Griffiths 2 (ML 4977), Red Dome (ML 5176), N-W Mungana (ML 5319). These include the Mungana Underground Mine and the historic Red Dome underground gold mine.

Auctus’ previous mining concentrated on base metals, as Mungana Gold Ltd. had the Au rights, which have since been acquired by CSD. Underground mining operated by Kagara Limited took place between 2008-2010 to depths of 700m, with material being processed at the Mt Garnet plant. Auctus began mining in 2017 until 2019 when the project was returned to care and maintenance. The project remains on care and maintenance but has a near-term restart opportunity. CSD plans to focus initially on mining the base metal sulphide ore from previously known prospective locations. There are two processing plants, Mt Garnet and Mungana with capability for gold and polymetallic ore processing over 1.2Mtpa, and CSD has plans to install a CIL plant in future.

The polymetallic resource, as of 2018 (MRE compiled by Entech Pty Ltd), comprises a total of 0.9MT of Zn, Cu, Pb, Au, Ag Reserves, and 4.00Mt Indicated and Inferred resources of Zn, Pb, Cu, Ag, Au, As, Sb, Cd. Gold mineralisation is located in an intrusive porphyry and surrounding skarn and clastic sediments, where it forms in close association with quartz stockwork and vein systems.

Royalty Overview

Altus owns 80.1% of a 3% NSR of Au on the 16km² project, which is triggered after production of 300k oz. Mungana is within Altus’ Resource Stage Portfolio and there are potential growth opportunities with the restarting of the Mungana Underground Mine.

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