Scorpio, Lode-Star sign toll milling deal

Canadian miner Scorpio Gold and its Goldwedge affiliate have inked a toll milling agreement with Lode-Star Mining that will send the latter group’s ore through the Goldwedge mill in Nevada, US
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The Goldwedge mill in Nevada, US

Neither financial details nor contract length were released, aside from confirmation it would be a "long-term" agreement. Tonnage totals were also not revealed, though the mill's capacity is about 400 short tonnes per day.

Under the terms of the deal, Lode-Star will pay in advance for design engineering, permitting and mill modifications needed for its ore processing. Specifically, it will require gravity with flotation for optimal recoveries of contained precious metals; the milling circuit at Goldwedge is currently configured with a gravity recovery circuit.

"The modifications to the Goldwedge milling facility will include the addition of a flotation circuit, supporting reagent tanks/silos, secondary lining of process containment ponds, leak detection and monitoring wells associated with fluid containments," Scorpio officials said.

The deal will also bring the Goldwedge facility out of semi-retirement, transitioning from temporary closure into production. It will offer benefits to the mill, located in Manhattan, Nevada, into the future.

"With the addition of a flotation circuit, the Goldwedge milling facility will have the capability of processing carbonaceous/sulphidic ores, expanding its availability for toll milling in addition to the Lode-Star arrangement," Scorpio said.

"The new flotation circuit will also result in improved recoveries for mineralised material within the Goldwedge deposit, potentially allowing for lower mining cut-off grades."

The 100%-owned property that includes the Goldwedge mill has a fully permitted underground mine. Scorpio has previously said the mill could be immediately restarted when needed.