Larvotto Resources announced on Tuesday that it has signed an offtake agreement with Glencore to supply concentrates from its wholly owned Hillgrove antimony-gold project in New South Wales, Mining.com reported.
The agreement covers gold concentrates from the first seven years of production at Hillgrove, with annual offtake of around 15,000 mt.
Glencore will cover all logistics costs from the mine to the final client destination, i.e., from mine to client’s door.
Together with the antimony concentrates offtake with Wogen Resources, the agreement completes Larvotto’s key concentrate marketing strategy for primary concentrate products from Hillgrove.
“As Hillgrove nears production, securing a globally recognized offtake partner for our gold concentrates is a major milestone in the transition from development to production,” said Ron Heeks, Managing Director.
“Unsurprisingly, with the strong gold price, all major commodity companies showed strong interest in offtake during the tender process.”
“Testwork on the Hillgrove project’s by-product tungsten concentrates continues, and offtake negotiations are expected to proceed as development activities advance.”
Last year, the company reported tungsten recoveries of 90% and a 16-fold upgrade in raw ore grade, indicating that a low-cost tungsten concentrate can be produced through a single efficient processing flow.
Hillgrove remains on plan to start production, with the capital expenditure exceeding budget, and commissioning is expected in August this year.
