Dateline Resources Limited announced that it has reached an agreement with MW Sorter LLC to bring together Dateline's Gold Links mine and Lucky Strike processing plant with MW's stockpiles at the London and Hock Hocking mines, located 160km from the plant. MW owns the London and Hock Hocking mine surface stockpiles of 800kt at 2g/t Au for 51,000oz Au. The surface stockpiles at the London mine were tested in 1985 by Behre Dolbear & Company, pre the introduction of the JORC code and the estimated grade is not JORC compliant.

The agreement with MW is to combine the Gold Links Mine, Lucky Strike processing plant and London and Hock Hocking Mine stockpiles into a new US entity, to be owned 50% by Dateline, 40% by MW and 10% by a private Australian investor. As part of the transaction, MW and the Australian investor have injected US$440,000 into Dateline subsidiary, Fossil Creek Mines LLC (FCM), and arranged a new USD 5 million working capital facility 1. Conditions imposed on the financing require that MW Sorter and Fossil Creek Mines operate at arm's length, so an interim toll-treating agreement has also been reached, which includes capital to be provided by MW to complete the upgrade and commissioning of the Lucky Strike Mill to achieve 250 tonnes per day (tpd) all-weather capacity. A new US entity will be established and operate independently with representatives of Dateline and MW on the Board and management committees.

The new entity will assess the opportunity to recommence underground mining at Gold Links, with ore to be blended with London stockpiles to ensure that the plant can consistently operate at 250tpd. Proposed Production Plan: The new financing will be used to acquire an ore sorter, three 40t haulage trucks and complete outstanding capital works on the processing plant. The stockpiles will be run through an ore sorter at the London mine site.

The test work by Steinert ore sorting, and Kappes Cassiday and Associates indicate that the stockpile is amenable to ore sorting with over 80% of the material reporting to waste and there being a corresponding improvement in the grade. This sorted product will be transported to Lucky Strike and be processed at a rate of 220tpd for six days per week. The new management team will assess the potential to displace the London sorted product with high-grade ore from the Gold Links, thus allowing the operation to continue for longer and at a more stable output level.