Black Oak Minerals (Receivers and Managers Appointed)(Administrators appointed)(the Company)
Marcus Ayres, Michael Owen and Simon Theobald of PPB Advisory were appointed joint and several Receivers and Managers of the Company on 27 November 2015. For more information please click here.
Black Oak Minerals (ASX Ticker: BOK) is an Australian mining and exploration company that is on the move. Investors in BOK are exposed to a compelling combination of near-term cash flow and outstanding exploration potential in the gold and precious metals sector.
Achieving what has proved impossible for many in the junior resources sector, BOK is now fully funded for the development of its existing gold and silver projects through its recently formed relationship with financier and cornerstone investor TrailStone group.
The planned cashflows from the current operations along with the cornerstone funding relationship strongly position the Company to enter a new phase of growth.
BOK has two main project interests. Located in central New South Wales along with the associated Mt Boppy Gold Project, the Manuka Silver Project was acquired in late 2014 and has been rapidly brought into silver production in early 2015.
The Marda Gold Project located near Southern Cross in Western Australia has recently received its mining approvals and is ready for development once Manuka is in steady-state production.
BOK also offers outstanding exploration upside within an extensive portfolio covering 1,600km2 in Western Australia within the under-explored Marda region and 200 km2 in the highly prospective Lachlan Fold Belt of NSW.
The Board and Management of Black Oak Minerals backed by the Company’s major shareholders remain committed to unlocking the value of our projects and securing further growth opportunities.
The Manuka Silver Project located in central NSW was acquired in September 2014.
The acquisition includes the process plant and infrastructure built at a cost of more than $60 million with a production capacity in excess of 2 million ounces per year, a 60 million ounce silver JORC Resource, and around 840 square kilometres of exploration ground in the highly prospective Cobar Basin.
The project is now in silver production following a rapid plant upgrade centred around the installation of a larger 1500kW ball mill to resolve grinding and recovery issues that hampered production by the previous operators. Immediate improvements in effective capacity and reduced operating costs are expected.
The project has a 60 million ounce silver Mineral Resource and a 9 million ounce silver Ore Reserve.
In parallel with development at Manuka, BOK is also pursuing near term production through the redevelopment of the Mt Boppy Gold Project in NSW, acquired through the merger with Polymetals Mining.
Mining commenced in March 2015 on a cut-back of the Mt Boppy open pit with the gold ore planned to be trucked to the Manuka mine for processing eliminating the infrastructure development and associated risk at Mt Boppy. Over two years the project is planned to produce a total of 69,000 oz of gold.
BOK completed a feasibility study for the development of a new greenfields gold operation at its Marda Gold Project in May 2012 and refreshed the study following the merger with Polymetals Mining Limited in 2013.
This study generated positive results, targeting an initial gold production rate of 50,000 oz per annum over four years from SXG’s internal resource base, treated through a centrally located 720,000 tonne per annum gold processing facility.
In August 2012, SXG acquired the Sandstone Gold Project assets from Troy Resources. This transaction provides a fully permitted CIL gold plant which can be relocated to Marda.
In October 2014, BOK received approval to commence mining and development activities at Marda Central, the core region of the Marda development.
BOK holds a 1,600km2 tenement position in the Southern Cross region, and the Company’s exploration strategy is focused on delineating additional resources at nearby deposits that would augment the potential gold operation at Marda.
An independent regional exploration review confirmed that the Marda region is highly prospective for additional discoveries especially along the Evanston Shear Zone, Golden Orb-King Brown Trend and Andromeda Trend where significant mineralisation has previously been intersected.
The recent acquisition of the Manuka Project south of Cobar in central NSW includes approximately 840 km2 of highly prospective exploration territory held in seven exploration licence areas.
The tenements are adjacent to, and overly, bounding structures on the western margin of the Cobar Basin. These structures are interpreted as potential pathways for mineralising fluids that have formed the Manuka deposit and other deposits nearby. BOK plans to develop both short and long term exploration strategies to follow up on exploration undertaken by previous owners and to identify new targets or concepts not yet tested. It has previously been reported that the tenement package is highly prospective for additional Manuka style mineralisation, base metals mineralisation (Gundaroo) and possibly gold mineralisation (McKinnons).
BOK also retains 204km2 of exploration tenements surrounding the Mt Boppy Gold Project in the prospective Lachlan Fold Belt centred on Canbelego, located 46km east of Cobar in New South Wales.
The region has produced in excess of 5Moz of gold. The Mt Boppy mine itself has historical production of 490koz gold. Given this prospectivity, the Company believes that there is potential for identifying similar Mt Boppy style deposits across the property via targeted exploration.