FORMAL MINING AGREEMENT EXECUTED FOR BURBANKS
Barra Resources Limited (Barra or the Company) is pleased to advise it has formalised the tribute mining agreement announced on 27 July 2011, paving the way for a new era of gold production at the Companys high grade Burbanks Gold Project, Coolgardie, Western Australia. This alliance allows an opportunity for a revenue stream in times of record gold prices at the lowest possible risk. Barra is pleased to be associated with FMR Investments Pty Ltd (FMR). FMR provide expertise, financial strength and milling capabilities. Mine development planning will commence immediately.
Under the deal FMR will fund the extension of the existing underground decline as well as manage the underground operations for a 50/50 split of the profit. This will enable the immediate resumption of underground mining at depth. The target will be to mine the pristine already discovered high grade zones beneath the areas of all previous production. High confidence in future success is provided by long, over half ounce pay-runs on the historic 7 Level and a modern 4.7 metre drill intersection of almost 15 ounces per tonne beneath these pay-runs (Figures 1 and 2).
The timetable for resumption of mining will be as follows:September / October 2011: