Crescent Gold shares were up sharply after the company said it had begun selling and processing ore from its born-again Laverton project through a deal with mining giant Barrick Gold.

The company put the project on care and maintenance in July last year after ongoing problems with its 1.5mtpa Barnicoat mill, but an ore purchase agreement with Barrick has allowed mining to resume.

Under the agreement, Barrick, using its nearby underutilised Granny Smith mill, will allocate 50 days per quarter to processing Crescent's ore.

Crescent said payment from Barrick would begin after the initial gold pour.

"There will be several progress payments made to Crescent by Barrick following each gold shipment (fortnightly)," the company said.

"These payments will amount to approximately 50 per cent of the gold value processed.

"A balance payment will be made at the end of the campaign period less costs and variances."

Crescent shares were up four cents, or 23.53 per cent, to 21 cents at 9.25am after hitting an earlier peak of 24 cents.