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Tombola rise to regional proportions

14 July 2022
ASX: TBA
Jack Baker

Tombola Gold have signed formal agreements to fully acquire the open-cut Lorena gold and copper mine along with its processing facility and leases nearby its Cloncurry operations in outback Queensland.

The move secures the explorer’s position to soon emerge as a regional-level producer.

With cash flow and reserves on hand, the Queensland-based company opted to bring production into the short term and synthesise Lorena with its nearby Mt Freda and Golden Mile projects to form an expansive complex.

Map of Lorena and current Queensland tenements.

The company said it had taken a pivotal step towards becoming a meaningful Australian gold producer.

“[This] not only allows Tombola to increase gold production as well as undertake gold-optimisation planning studies, but now we will have the capacity to treat various ore bodies with gold and copper,” managing director Byron Miles said.

“We have added a substantial asset to the balance sheet, allowing Tombola to expand faster and minimise dilution for shareholders.”

Also, having acquired five project sites from True North Copper in the region, Tombola expects numerous updates from its exploration pipeline.

TBA’s Australian Stock Exchange-listed share price has risen 2.86 per cent today, selling at 3.6c (10.00 pm UTC+ 8 hours).

COMPANY OVERVIEW

Tombola Gold (ASX:TBA) is a new Australian gold producer, with mining underway and expansion in progress as the Company fast tracks to first cash flow in 2022, with Scoping Studies indicating potential for a profitable operation. The Mt Freda Complex consists of several gold mines including the Mt Freda Gold Project and Golden Mile Project, which are in close proximity to core infrastructure in the area including roads, power and on-site facilities. The Company has already advanced construction of its own gold processing plant on site, and has a well-defined expansion strategy of utilising near-term gold cashflows to drive resource expansion with LOM extensions and exploration focus. Tombola Gold also holds the Burra Project, a strategic tenement holding in a geologically prospective area with ~6,500 km2 including the G2 Structural Corridor, host to Olympic Dam, Carrapeteena, Prominent Hill, with multiple historic high-grade copper and gold workings. The Company has already secured a $300,000 grant from South Australian Governments Accelerated Discovery Initiative.

COMPANY INFORMATION

ASX: TBA

Website

https://tombolagold.com/
https://www2.asx.com.au/markets/company/tba

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