Challenger mine resumes operations, produces first gold

JOHANNESBURG (miningweekly.com) – After being temporarily suspended by its former owner in March, the Challenger gold mine, in South Australia, has resumed production and site operations, with the first gold bar produced on Tuesday under the mine’s new owners, ASX-listed gold producer WPG Resources and joint venture partner Diversified Minerals.

The two companies acquired Challenger in March from Kingsgate Consolidated, creating the new Challenger Joint Venture (CJV), which now owned and operated the mine.

CJV noted on Tuesday that site operations had resumed early last week with the crushing and milling of low-grade and stockpiled ore, while underground mining activities started on Thursday.

The company added that, since the mine’s suspension, a new management team had been recruited for the project, with the new mining contractor, Pybar Mining Services, mobilising its personnel, plant and equipment to site.

Several new contracts had been let for a diverse range of services, including fly-in-fly-out air charter operations, power supply, catering and fuel supply.

The staff complement at the mine included 175 workers, comprising 75 CJV personnel, and 100 contractors – 25 less than previously.

WPG executive chairperson Bob Duffin noted that the transition from the old regime to the new had been effected in a smooth and seamless manner.

“It’s a credit to the commitment and professionalism shown by the restart team . . . that the mine is back in production, on schedule and under budget,” he said, confident that the project had a good future ahead, not only because of the strong management team and mining contractor, but also because of the increased mineral resource estimate announced earlier this month.