Impact Minerals has pulled out of the Blackridge gold project north of Clermont, only a month after announcing plans for trial mining.
Managing director Michael Jones said the move followed extended discussions regarding a renegotiation of the option agreement that Impact Minerals had with Rock Solid Holdings over key Mining Lease applications at the project
The Board of Impact had elected not to proceed with the exercise of its option to acquire 95 per cent of the tenements, he said.
“Accordingly, the proposed trial mining program at Blackridge will also not take place,” Dr Jones said.
“The discussions came about because very large bulk samples and trial mining was not a consideration at the time of the original option agreement negotiations.
“Such an approach only became required after the results of various bulk sampling program completed by Impact.
“In addition, the commercial terms of a proposed royalty payment by Impact to Rock Solid Holdings during the trial mining period, could not be agreed upon.”
He said Impact would focus its efforts on other existing key exploration projects in New South Wales.
Queensland contractor Nimble Resources had been lined up to carry out the trial mining under a tribute agreement which would see it cover set-up, mining, processing and rehabilitation costs at the project.