Name of the Project
Wiluna Stage 1 sulphide project.

Location
The Yilgarn Crayton, in the Northern goldfields of Western Australia.

Project Owner/s
ASX-listed Wiluna Mining.

Project Description
The project involves the staged development of the sulphide operation from its current production of an estimated 62 000 oz/y from mining free milling ore through the current 2.1-million-tonne-a-year carbon-in-leach (CIL) processing facility, to initially produce between 100 000 oz/y and 120 000 oz/y of gold and gold in concentrate.

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

Wiluna is further planning to increase production by at least doubling the mining rate, and increasing production by the concentrator to an estimated 250 000 oz/y of gold by the end of 2023 or early 2024.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
The estimated cost of the project is A$81-million.

Planned Start/End Date
Not stated.

Latest Developments
Wiluna Mining has announced a major capital raising initiative to fund the Stage 1 development of its Wiluna project.

The company will raise an initial A$7.5-million to sophisticated investors. The share placement will be made under the company’s existing placement capacity at A$1 a share.

In addition, Wiluna is also hoping to raise up to A$31.5-million under a one-for-four nonrenounceable entitlement issue, at A$1 a share.

Major shareholders and Wiluna executive chairperson Milan Jerkovic, have indicated that they will take up their entitlements in full, raising a combined A$14-million under the entitlement offer.

The entitlement offer is expected to conclude on May 7.

Wiluna has also told shareholders that there is potential to advance the company’s existing finance facility with Mercuria Energy Trading by an additional A$40-million to contribute to funding the Stage 1 development of the Wiluna operation, subject to Mercuria’s credit approval process.

A signed, indicative, nonbinding term sheet is being progressed, with the intention of financial completion subject to certain conditions precedent and mandatory approvals.

Capital raised will go towards the construction and commissioning of the Stage 1 concentrator and mine, to deliver about 120 000 oz/y of production, as well as to fund feasibility work associated with the staged development programme to achieve a gold production of 250 000 oz/y.

Wiluna recently reported a 142% increase in its gold reserves at its Wiluna underground operation, with the project now estimated to host an underground ore reserve of 4.33-million tonnes, grading 4.474 g/t gold for 661 000 oz of contained gold.

The company earlier this week also formalized an agreement with contractor Byrnecut Australia for underground development and production mining services at Wiluna, over the next five years.

Wiluna has started a three-year staged development plan which is aimed at treating all the ore types at the mine through four processes, including the existing CIL plant, a flotation and concentrator, a gravity circuit and a tailings retreatment plant. 

Key Contracts, Suppliers and Consultants
GRES (engineering, procurement and construction contractor for the Stage 1 works) and Byrnecut Australia (underground development and production mining services).

Contact Details for Project Information
Wiluna Mining, tel +61 8 9322 6418 or email info@wilunamining.com.au.