Processing has started at a rate of 40 tonnes per hour with low grade feed being used while the mill transitions with the Nex ore.

As per the deal with A1, Nex can use the mill for up to six months with a production rate of 1,200 tonnes per day.

The deal with Navigator covers the treatment of 150,000 tonnes of ore from Nex’s Butterfly Pit in up to 60,000 tonne allotments between 1 September 2011, and 31 March 2012.

Nex currently has about 10,000 tonnes of ore stockpiled at the mill site, according to

The deal supplements a toll treatment agreement with Navigator for the latter’s Bronzewing Processing Plant.