Name of the Project
Cowal underground development project.

Location
New South Wales, Australia.

Project Owner/s
Evolution Mining.

Project Description
The Cowal Gold Operation (CGO) is an existing opencut gold mine that has been operating since 2005. As per current approvals, CGO will mine an estimated 167-million tonnes of ore over its 28-year life span, processing up to 9.8-million tonnes a year. Gold extraction is undertaken using a conventional carbon-in-leach cyanide leaching circuit.

As at December 31, 2020, the underground project had ore reserves of 1.05-million ounces.

Evolution is seeking approval to build and operate an underground mine at CGO to provide access to another 1.8-million ounces of gold over a 17-year mine life.

The additional gold produced over the estimated life-of-mine of the underground mine will be treated in the same ore processing plant and will rely on the same infrastructure as the openpit mine.

Sublevel open stoping with backfill mining methods will be used.

During the ramp-up phase, the underground mine is expected to produce between 400 000 t to 1.1-million tonnes of ore between 2022 and 2024, increasing to between 1.6-million and 1.9-million tonnes during its peak operation between 2025 and 2031, and winding down to between 0.9-million and 1.25-million tonnes between 2032 and 2038.

Potential Job Creation
Existing jobs at the opencut mine will be retained and it is estimated that about 200 full-time equivalent jobs could be created at the peak of construction.

Once in operation, it is estimated that a further 160 jobs will be created, taking the operational workforce to about 660 full-time jobs.

Evolution has said that, where possible, it will upskill its existing workforce.

Net Present Value/Internal Rate of Return
The project has a pretax internal rate of return of about 15% and a payback of about eight years.

Capital Expenditure
A$380-million will be invested during the 2022 and 2023 financial years, with A$240-million for surface infrastructure, paste plant, process plant modifications and an accommodation village, and A$140-million for initial mine development costs.

Planned Start/End Date
First production ore is targeted for the March 2023 quarter, which coincides with the commissioning of the paste plant.

Latest Developments
The New South Wales government has approved the Cowal gold project, extending the operation’s permitted mine life to 2040.

The underground mine is key to Evolution Mining’s goal of producing 350 000 oz/y from Cowal with the addition of a new higher-grade underground ore source to blend with ore from the E42 openpit.

The Evolution board approved the development of the project in July, subject to the receipt of final regulatory approval.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Evolution Mining, tel +61 2 9696 2900.