Orminex has achieved steady-state production at its Comet Vale gold mine between Menzies and Kalgoorlie-Boulder as partner Mineral Ventures enters into an agreement to buy the Burbanks processing facility near Coolgardie.

The ASX-listed miner reported 2069 recovered gold ounces from its first major gold pour out of Comet Vale’s Kings Bounty and Penny’s Find mines, about 100km north-west of Kalgoorlie-Boulder.

Steady-state mining has now been achieved at Kings Bounty, which accounted for about 17,000 tonnes of the 20,628 tonnes processed at Lakewood Mill.

Orminex Executive Chairman Daryl Henthorn said the announcement was a transformational milestone for the company.

“We have now successfully completed our first mine plan processing campaign and achieved steady-state production of around 10,000t of ore per month at Comet Vale in less than 18 months since acquiring the project,” he said.

“We will continue to deliver ore for processing, with our next campaign booked for October, and grades are improving in line with historical high-grade unmined ore.

“The onsite ore at Penny’s Find alone paid for more than 70 per cent of the purchase price of the mine, which is a huge financial bonus.”

The processing campaign confirmed total gold production on 1818 recovered ounces at 94 per cent recovery from Kings Bounty at an average head grade of 3.53g/t, above initial expectations.

Penny’s Find produced 251 recovered ounces at 2.75g/t.

ONX has reported Kings Bounty is now in continuous production and is nearing maximum planned capacity.

The Comet Vale gold project is 51 per cent owned by Orminex, with Sand Queen Gold Mines claiming the remaining stake. Penny’s Find is 100 per cent ONX-owned.

Image: Getty Images.