Project History
The Project was owned by Luiri Gold Ltd (ASX:LGM) and consisted of two historic gold mines, Matala and Dunrobin together with several exploration targets all contained within a single 31.38 km2 large scale 25-year renewable mining licence.
Luiri Gold Ltd lost the mining licence is 2013 having invested more than USD$25m in drilling and test work, completing a successful scoping study on the Matala deposit and a feasibility study on the Dunrobin deposit.
In November 2015, Cradle Arc PLC (AIM:ALO), formerly Alecto Minerals PLC commissioned Penmin Ltd (Johannesburg) to undertake the following works:
- Update the Definitive Feasibility Study prepared by Coffey Mining Pty Ltd.
- Prepare the Design Build & Operational contract for the Project.
- Prepare a mining contract to secure a mining contractor.
- Arrange vendor finance for the supply of the processing plant.
- Obtain all the relevant permits, approvals, and insurances to commence production
In December 2018, a 4-year Large Exploration Licence (LEL-HQ-23009) was granted over the project area to a local Zambian company Cupriferous Resources Limited. In May 2020, Cupriferous Resources Limited attempted to sell 85% of LEL-HQ-23009 to Volt Resources Ltd (ASX:VRC). As part of its due diligence process, Volt Resources Ltd commissioned geological and mining consultants, Optiro Pty Ltd (Perth) to prepare a 2012 JORC Mineral Resource estimate based on the mining information owned by Westate. The highlights of which included:
- Luiri Hill Project Mineral Resource Estimate 10.2 million tonnes at 2.6 g/t gold for 851,000 ounces of gold.
- Matala deposit estimated to contain 674,000 ounces of gold.
- Matala deposit open at depth and along strike to both the East & West.
- Further exploration potential.
- Historical leach pad resource estimate to be progressed.
Following Westate’s intervention to protect its mining information, Volt ultimately decided not to proceed with the transaction and following it being gazetted for cancellation for failure to comply with the Zambian Mines and Minerals Development Act, LEL-HQ-23009, was transferred to another local Zambian company, Orezone Mining & Exploration Limited in early 2021.
LEL-HQ-23009 expired in December 2022 and Westate has been granted a Large Scale Exploration Licence (LEL-HQ-33454) over the historic Matala Gold Mine and surround areas in July 2023.