West Coast Silver (ASX: WCE) will collaborate with Artemis Resources (ASX: ARV) to determine whether ore from West Coast’s ++Elizabeth Hill++ silver mine could be economically processed at Artemis’ Radio Hill concentrator, 25 kilometres to the north in Western Australia’s Pilbara region.
The evaluation process will see the companies work together on the exchange of technical data, metallurgical samples, plant configuration details, and logistical information relating to transport and handling.
Site visits and joint technical assessments will be conducted as required and each company will be responsible for its share of evaluation costs.
Any formal processing agreement (including toll treatment arrangements) will proceed subject to the completion of a favourable technical and commercial assessment and the negotiation of a definitive binding agreement.
Fully Permitted Facility
Radio Hill is a fully permitted 425,000-tonne-per-annum nickel-copper concentrator located 35km south of Karratha.
Artemis purchased the asset in 2016 from Fox Resources – which collapsed into administration this year – as part of a package that included flotation circuits, tailings storage facility, administration and maintenance buildings, and a fully developed underground mine.
The plant remains on care and maintenance but is able to be rapidly recommissioned.
The historical Elizabeth Hill mine produced 1.2 million ounces of silver from 16,830t of ore at a head grade of 2,194 grams per tonne (70.5oz/t silver) before mining ceased in 2000 when the silver price dropped to US$5/oz.
Untapped potential is thought to remain in-ground, with the deposit open at depth and consolidation of acreage into a single contiguous 180 sq km package offering West Coast the potential to discover more Elizabeth Hill-style deposits.
Valuable Proposal
West Coast executive chair Bruce Garlick said the proposal would hold significant value for the company.
“Elizabeth Hill is one of Australia’s highest-grade historical silver deposits, and the opportunity to assess Radio Hill as a potential processing solution aligns with our strategy to fast-track development while maintaining capital discipline,” he said.
Artemis executive director Joszef Patarica was similarly keen.
“Radio Hill has historically demonstrated versatility across multiple ore types, and this co-operation [with West Coast] allows us to assess future processing opportunities while supporting potential development of a high-grade silver project in our region.”
