Photo by: Bloomberg
PERTH (miningweekly.com) – The Boorara gold mine, in Western Australia, is poised to deliver its first gold in July this year, after the board of ASX-listed Horizon Metals gave approval for the development of the first stage of the project.
“The commencement of mining at Boorara is a significant milestone for the company, enabling gold production and cash generation in 2020, in time of record high Australian dollar gold prices,” said MD Jon Price.
The Stage 1 openpit operation, which is based on the development of the Regal and Crown Jewel deposits is expected to produce 159 000 t of ore, producing 9 500 oz of gold over a six-month mine life, and at a capital cost of A$0.44-million.
Ore from the openpit operation will be toll milled at Golden Mile Milling’s one-million-tonne-a-year Lakewood mill, which is located some 7 km from the Boorara operation. The ore will be processed in monthly campaigns under Horizon’s supervision, to enable mill grade reconciliation data to be compared against the reserve and resource models.
Price on Tuesday said that all the necessary statutory approvals for mining to start were now in place, with a A$4-million working capital facility fully drawn down.
Site establishment and mobilization of contractor Hampton Transport Services’ mining fleet has been completed, and first ore is expected in May, with first ore delivery to the mill expected in June. The first milling campaign is scheduled for July.
“We are now fully focused on safe and efficient mining operations at Boorara, generating cash to self-fund the resource growth drilling programme and the completion of the larger-scale and longer-term production profile as part of the consolidated feasibility study,” Price said.