Projects Overview

Strategy

  • Gold production with lowest possible risk
  • Comprehensive drilling of Phillips Find Mining Centre
  • Targeted alliance with Blue Tiger Mines Pty Ltd (Blue Tiger) to develop extract value from the Burbanks Mining Centre
  • Strategic alliance to bring Mt Thirsty Cobalt Nickel project into production
  • Acquisitions to grow gold resource base

Burbanks

In mid-2013, in line with the company’s strategy towards low risk revenue generation, Barra sold the Birthday Gift Underground Mine (‘Mine Area’) to Blue Tiger Mines Pty Ltd (Blue Tiger) for a series of staged payments totalling $2M. In addition Barra will receive a $25 per ounce royalty on production over 6,000oz. Barra retains 100% sole and exclusive rights to explore and mine for gold on all the area outside of the Mine Area (see Figure 2 under Burbanks History). The sale agreement with Blue Tiger affects M15/161 only.

The sale of the Birthday Gift Mine provides a passive income stream for Barra. The cash and potential royalty payments will allow Barra to fund the development of more prospective prospects at Burbanks such as Burbanks North, Salmon, Main Lode and Kangaroo Hills.

Phillips Find

Barra’s recent work has been aimed at unlocking the structural complexities of the area to discover new deposits. In 2011, drilling at the Phillips Find Mining Centre confirmed structural interpretations and extended the limits of the resource at the Newminster Deposit.

The Newminster Deposit was subsequently mined by Blue Tiger in January 2013. Blue Tiger mined over 4,300oz grading 2.7 g/t Au and produced 20% additional ounces than budgeted. The operation provided risk free cash flow to Barra and has provided access to potential underground development. Barra aims to develop additional partnerships to reap further value from Phillips Find.

Mt Thirsty JV (Barra 50%, Conico Ltd 50%) (www.mtthirstycobalt.com)

Mt Thirsty contains a world-class Cobalt-Nickel Oxide deposit with the potential to emerge as the one of the world’s top ten cobalt suppliers.

Recent studies have been conducted to investigate alternative development strategies for Mt Thirsty. Metallurgical testwork on a continuous vat leaching process (CVL) using the proprietary INNOVAT treatment process has proved encouraging.

Extensive, ongoing metallurgical testwork has resulted in a modification to the initially successful INNOVAT-CVL process. Recent developments include the use of the cheaper and more efficient option of using sulphur dioxide (SO2) rather than sodium metabisulphite (Na2S2O5) as the main leaching agent.

Two flow sheets are currently being studied, using two different processes; a resin in pulp and a paste thickener option. Both methods were revealed to have similar capital and operating costs.

Riverina JV (Barra 30%, Riverina Resources Pty Ltd 70%; Nickel Rights Only)

The Riverina Joint Venture (RJV) holds 100% of the rights to nickel only within the Riverina Project, located some 125km northwest of Kalgoorlie, WA. The project is owned and operated by Swan Gold Mining Ltd as a gold project; the RJV has no statutory obligations in relation to the project tenements.

From a nickel perspective, the project is prospective for nickel laterite and primary nickel-sulphide mineralisation. The RJV defined a JORC 2004 nickel laterite Indicated Mineral Resource of 2,340,700t @ 1.01% nickel and 0.06% cobalt (0.7% nickel lower cut-off). The RJV also discovered nickel sulphide mineralisation at the Martin’s Zone prospect in 2006.

The RJV has no near term plans to explore for nickel at Riverina.