Lode-Star Mining Inc. is pleased to announce the signing of a Toll Milling Agreement between Scorpio Gold Corporation’s company affiliate, Goldwedge LLC. The Agreement will allow for the processing of ore delivered from Lode-Star’s Goldfield Bonanza Project to Scorpio Gold’s 400 ton per day Goldwedge milling facility located in Manhattan, Nevada.
Under the terms of the Agreement, Lode-Star will advance funds required for the design engineering, permitting and mill modifications. Based on previous metallurgical testing, the Company’s ore requires gravity combined with flotation for optimal recoveries of contained precious metals. The Goldwedge milling circuit 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. The Agreement provides for Lode-Star to recoup the advanced funds through a reduction in toll milling rates until all advanced funds have been repaid. Following repayment, the toll charges will revert to standard rates.
This Agreement is mutually beneficial for both parties. With the addition of a flotation circuit the Goldwedge milling facility will have the capability of processing carbonaceous/sulfidic ores, expanding its availability for toll milling. Lode-Star benefits from having a long-term processing agreement for their ores at a location operated by an experienced processing team. The mill is in close proximity to the Company’s mine, thus minimizing haulage costs, and will have a milling circuit optimized for peak metallurgical recoveries.
The Company’s President and CEO Mark Walmesley comments, “This Agreement couldn’t be more timely. After considerable work between Lode-Star and Scorpio Gold’s management both parties agree each company will greatly benefit from this Agreement. The Company has completed its underground infrastructure improvement phase of over 1/2 mile of drift at the 300ft level. The Company’s next focus is the execution of a surface drilling program that is recommended in the Company’s NI 43-101 filed on January 20, 2020 and the continuation of our disciplined mine-ready underground development. I believe with the Company’s steady completion of its milestones Lode-Star is now well positioned to raise capital.”
About Lode-Star Mining Inc.
Lode-Star Mining Inc., traded on the OTC Markets’ OTCQB marketplace under the symbol LSMG, is a U.S.-based junior-tier mining company focused on the exploration, development, and production of North American mineral assets.
LSMG is the operator of the Goldfield Bonanza property, acquired under an option for development on December 11, 2014 from Lode Star Gold, Inc., a private Nevada corporation. Please visit LSMG’s OTC Markets profile page for more information.