Evolution buys new project at the end of Sept quarter

PERTH (miningweekly.com) – Gold miner Evolution Mining has reported a slight decline in September quarter production and has announced the acquisition of a new project as a potential extension for its Cowal mine, in New South Wales.

Production for the period under review reached 205 307 oz, compared with the 216 644 oz produced in the previous quarter, while all-in sustaining costs dropped from the A$1 117/oz reported in the three months to June, to A$1 060/oz.

The Cowal mine produced 64 032 oz during the quarter under review, while Edna May and Mungari, both in Western Australia, produced 20 012 oz and 38 295 oz respectively.

In Queensland, the Mt Carlton mine produced 25 544 oz, while the Mt Rawdon operation delivered 24 878 oz. The Cracow mine also produced 21 554 oz of gold during the quarter under review, with Pajingo producing 10 991 oz of gold for the September quarter, before its sale to Minjar Gold was completed at the start of September.

During the quarter under review, Evolution paid A$880-million to gain a 30% stake in the Ernest Henry operation, in Queensland, entitling it to 100% of the gold production at the mine, subject to an agreed life-of-mine and block model.

The acquisition added about 85 000 oz/y to Evolution’s bottom line.

Meanwhile, the miner reported that it planned to buy the Marsden copper/gold project from Newcrest for A$10-million.

The project, which has an indicated and inferred resource of 180-million tonnes, grading 0.2 g/t gold and 0.38% copper for 1.1-million ounces of gold and 670 000 t of copper, is located immediately to the south-east of the Cowal gold mine, and is the nearest known sizeable mineral deposit to the Cowal mine, outside of the Cowal tenement package.

Executive chairperson Jake Klein said the Marsden project provided long-term optionality for the Cowal operation, and had the potential to further extend the life of what is already a long-life operation.

A technical review by Evolution showed that the potential to develop the Marsden deposit is enhanced by using the Cowal milling circuit and associated infrastructure.

The current Cowal treatment facility is unable to treat the Marsden material concurrently with the Cowal ore, and any option involving the processing facilities at Cowal would only come at the end of the mine life.