Great Divide Mining (GDM) has finalised its farm-in agreement with Adelong Gold to recommence operations at the Adelong gold mine in New South Wales.
Originally announced in November 2024, GDM was appointed manager to operate the Adelong gold mine and its processing plant and associated equipment.
As per the agreement, GDM will initially take a 15 per cent holding in Challenger Mines, Adelong Gold’s subsidiary, by spending $300,000 on exploration.
It will then increase its ownership to 51 per cent once gold production has commenced at the processing plant.
With existing mining leases and approvals in place, GDM intends to accelerate the restart of Adelong’s mine and processing plant to achieve first pour within 12 months.
If first pour is not achieved in time, Adelong Gold retains the right to revert its ownership over the mine to 100 per cent.
“We are pleased to have secured this agreement with GDM, which provides a clear pathway towards production at Adelong,” Adelong Gold managing director Ian Holland said.
“The agreement aligns with our strategy to unlock the value of the project while ensuring a pathway to retain control should key milestones not be met. We look forward to working closely with GDM to advance the project and deliver value to our shareholders.”
GDM is expected to commence testing and commissioning works at the Adelong processing plant during the third quarter of the 2024–25 financial year. These works include minor reconfiguration works and recommissioning.
Once first gold is produced, the plant is expected to need further reconfiguration and expansion to be suitable for commercial production.
“Finalisation of the definitive agreements puts GDM squarely onto the path to produce first gold from the (Adelong) gold mine,” GDM chief executive officer Justin Haines said.
“Our aim is to produce first gold as rapidly as possible then expand the operation to primary mining and increase the plant capacity. The planning for this phase will advance once the initial production is confirmed.”
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