Saturn Metals has signed an agreement with the organisation representing the native title holders of the northern Goldfields land where the company’s Apollo Hill gold project is located.
Saturn told the Australian Securities Exchange on Friday the signing of the agreement with the Wangkatja Tjungula Aboriginal Corporation supported the grant of Apollo Hill mining lease 31/496, and other future tenements, and paved the way for completion of permitting for the development of the project.
The company said WTAC was the registered native title body corporate for the Nyalpa Pirniku people, who are recognised as holding the native title rights and interests on the land on which Apollo Hill is located.
Apollo Hill is 65km south-east of Leonora and has a mineral resource estimate of 137 million tonnes grading 0.51g per tonne for 2.24 million ounces, with 82 per cent classified within the higher confidence measured and indicated categories.
The project also has a current ore reserve of 104.6Mt grading 0.47g/t for 1.59Moz.
A prefeasibility study released last December estimated it would cost $472 million to bring Apollo Hill into production via a large-scale open pit mine and 10 million tonnes per annum heap leach processing facility.
The study estimated the project would have an initial 14-year mine life generating life-of-mine undiscounted, pre-tax free cash flow of $1.9 billion.
The company is preparing a definitive feasibility study for release later this year.
Saturn said the native title agreement reflected standard commercial terms for gold mining projects in WA, including milestone payments, along with annual production-based royalties on gold once mining operations started.
The company said it incorporated cultural heritage protection and management provisions, supporting a co-operative and responsible working relationship as the project advanced.
Saturn said, importantly, the agreement outlined opportunities for employment and proactive business participation, seeking to ensure economic benefits for the Nyalpa Pirniku native title holders.
The company said overall it established a clear and long-term framework for collaboration between Saturn and WTAC throughout the exploration, development, and operational stages of the Apollo Hill project.
Saturn managing director Ian Bamborough said the agreement had been reached after the company had built a long-term successful relationship with the Nyalpa Pirniku people at Apollo Hill.
“We are delighted, in conjunction with their representative body, the Wangkatja Tjungula Aboriginal Corporation, to be moving the project through the final stages of development, and towards production,” he said.
“We look forward to working closely with the WTAC’s board and members, and to forging a strong and mutually beneficial relationship well into the future.”
WTAC chair David Canning sad the corporation and the Nyalpa Pirniku native title holders were pleased to be entering into a long-term partnering with Saturn under the umbrella of a protective agreement.
“WTAC and our people have cultural duties to look after our country, our burna, including Lake Raeside, the place of an important dreaming story and registered Aboriginal sacred site where much of the project is located,” he said.
“We trust that Saturn, with our help, will work with us to fulfill our cultural obligations to burna, including the lake, and to our ancestors and the current and future generations of our people.
“The jobs and contracts that will be offered under the agreement are also very important to the economic future and self-determination of our people.
“The negotiation for the agreement was robust, with both negotiation teams putting forward their views, and the agreement is strong and we look forward to the future relationship with Saturn, always working together in good faith.”
