Saracen expects first Thunderbox gold sooner

PERTH (miningweekly.com) – Gold miner Saracen Mineral Holdings now expects first gold production from its Thunderbox gold mine, in Western Australia, in the June 2016 quarter, three months ahead of schedule.

The A$65-million project was expected to be commissioned in the March quarter, as outstanding progress was made with mining, plant refurbishment and infrastructure.

Mining at Thunderbox started in early July, also ahead of schedule and, to date, material movement was some 7% ahead of budget.

MD Raleigh Finlayson said the excellent progress made at Thunderbox had placed Saracen in an outstanding position.

“First gold from Thunderbox will see Saracen produce gold from multiple operations for the first time, doubling our production base while reducing our average cost of production.

“This will realise our objective of joining the ranks of midtier gold companies producing in excess of 300 000 oz/y.”

Meanwhile, Saracen had also taken advantage of the recent increase in the Australian gold price, hedging a further 40 000 oz at an average price of A$1 600/oz, to further underpin the first year of production at Thunderbox.

The Stage 1 Thunderbox openpit operation would deliver 597 000 oz of gold, over an initial mine life of four-and-a-half years and, along with organic growth at Carosue Dam, would effectively double Saracen’s gold output to about 300 000 oz/y.