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Klondex Mines Ltd. (TSX:KDX,OTCQX:KLNDF) and LKA Gold (OTCQB:LKAI) have entered into a toll milling agreement to process high grade ore produced from the Golden Wonder Mine at Klondex’s Midas mill. All dore produced will become the property of Klondex, and Klondex will pay LKA the value of the recovered gold minus all toll mill charges.
As quoted in the press release:
Under the terms of the agreement, high grade ore, greater than 51.4 g/t (1.5 opt) Au from the Golden Wonder Mine, located near Lake City, Colorado, will be delivered to the Midas Mill for processing. Pursuant to the toll milling agreement, all dore produced will become the property of Klondex, and Klondex will pay LKA the value of the recovered gold minus all toll mill charges.
Klondex Mines VP Business Development and Technical Services, Mike Doolin, said:
This agreement marks the second toll milling agreement put in place since we bought Midas in February. Processing third party material makes good use of the mill, while still leaving us with ample capacity as we continue to develop the Midas and Fire Creek mines. We look forward to working with the LKA team on the Golden Wonder project.
Click here to read the Klondex Mines Ltd. (TSX:KDX) press release
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