Tartana Minerals advances towards 600,000tpa Mungana plant deal, plans copper production growth
Tartana Minerals (ASX: TAT) is in advanced discussions with Mt Garnet Mining Finance (MGMF) to manage the Mungana processing plant in the Chillagoe region of far north Queensland which is currently under care and maintenance.
The plant — along with the Mungana and King Vol underground mines and several undeveloped projects near Tartana’s operations — was previously owned by Aurora Metals, which went into liquidation in 2023 after defaulting on a series of loan facilities owed to Mt Garnet.
With a nameplate production capacity of 600,000 tonnes per annum, the plant has been subject to significant capital investment by previous owners, including Aurora.
Open-pit project
Management of the plant would allow Tartana to produce a copper sulphide concentrate using ore from its open-pit copper mine located 25 kilometres away.
The mine has a contained primary copper (chalcopyrite) resource of 45,000t grading 0.45%, with drilling expected to increase this beyond 100,000t.
The resource is believed to continue at depth, with recent exploration returning intersections 300m below the surface including 52.4m at 0.59% copper from 325.5m and 2m at 1.66% copper, 32.6 grams per tonne silver and 106 parts per million bismuth.
Tailings dam
Management of the plant would also permit Tartana to utilise the Mungana tailings dam, which has the capacity for several years of Mungana processing, with additional cells already approved.
Tartana has agreed to fund 50% of the plant’s care and maintenance costs, capped at $100,000 per month, until a heads of agreement is executed with MGMF in March 2025.
Both parties will perform considerable due diligence in the interim and, should the agreement not proceed, Tartana may be entitled to a repayment of the costs outlaid.
Defining resources
Tartana managing director Dr Stephen Bartrop said his team was keen to take management control of the Mungana plant.
“We have spent the last three years defining the open-pit copper and zinc resources at our mining leases and completed the metallurgical test work needed for processing in a conventional flotation plant,” he said.
“Mungana has experienced a chequered history, largely stemming from unsustainable ore supplies from underground mining, however we believe this impediment will be removed with the Tartana open pit, which could achieve production on a more sustainable basis.”
Dr Bartrop said the company had commissioned an experienced team of engineers, including former managers of the Mungana plant, to review the plant’s condition and consult on the refurbishment and restart.
King Vol restart
Dr Bartrop said Tartana and MGMF may also explore the potential to restart mining activities at the King Vol mine, located 800m from Tartana’s Queen Grade zinc deposit in the medium term, which could present opportunities for an integrated development process.
“King Vol was the backbone of Aurora’s operations and provided the majority of ore feed to the Mungana plant,” he said.
“However, it is currently flooded and will require dewatering, rehabilitation and the installation of services before we can drill to fully define the orebody.”
Investigations are also continuing into a restart of the Mungana gold-zinc underground mine, where the ore is more metallurgically complex and processing could lead to overall reduced recoveries and poorer concentrate quality.