PERTH (miningweekly.com) – The board of ASX-listed Wiluna Mining has approved the Stage 1 sulphide development at its namesake gold project, in Western Australia.

The staged development of the sulphide operation would see Wiluna transition from its current production profile of producing some 62 000 oz/y from mining free milling ore through the current 2.1-million-tonne-a-year carbon-in-leach processing facility, to initially produce between 100 000 oz/y to 120 000 oz/y of gold and gold in concentrate.

This shift will be done using the current, recently refurbished crushing circuit, as well as the previously expanded mill circuit and a new 750 000 t/y concentrator.

Wiluna was further planning to increase production by, at a minimum, doubling the mining rate and the concentrator to produce some 250 000 oz/y of gold by the end of 2023, or early 2024.

Total costs for the project have been estimated at A$81-million, with some A$20-million already spent on the project.

Wiluna on Friday announced the appointment of ASX-listed GR Engineering Services as the engineering, procurement and construction contractor for the Stage 1 works, with the contract valued at A$25.7-million.

GR Engineering is expected to start work in early December, with commissioning scheduled for October 2021. 

“The timetable is confirmed and the capital requirements for Stage 1 will be fully funded with the expected draw down of the Mercuria second tranche debt facility and work will commence immediately with commissioning planned for September 2021,” said Wiluna executive chairperson Milan Jerkovic.

“The challenge now is to deliver on Stage 1 and scope out the optimum size for Stage 2, given the considerable size of the Wiluna orebody. This will take shape in the feasibility study, which is currently being undertaken.

“We are now exactly halfway through our 24-month strategy to turn the company around, deliver real value for our shareholders and maximise the true potential of the Wiluna Mining Complex. We are delivering on our promises as we plan to execute with precision,” said Jerkovic.

“The sheer size of Wiluna, which is now the seventh largest gold district under single ownership in Australia, based on Joint Ore Reserves Committee-compliant mineral resources, throws up challenges but nothing worthwhile comes easy and we believe the price for shareholders of developing this project is a systematic, thorough and staged manner to become a Tier 1 asset in a Tier 1 jurisdiction will be worth it.”

The Stage 2 sulphide development feasibility is scheduled for completion in the last quarter of 2021, with the scale of the expansion based on the mineral resource model, which will be announced in January next year.