PERTH (miningweekly.com) – Gold miner Resolute Mining has been awarded nine new mining leases over areas that will support its A$150-million Ravenswood expansion project, in Queensland.
The miner said that the leases included areas within the operational footprint of the proposed Buck Reef West openpit and nearby land required for infrastructure.
Resolute is in the midst of a strategic review of the expansion plan, exploring technical enhancements to the expansion study, which could deliver increased returns through an optimised development plan, including an expanded production profile.
“These new mining leases support our plans to expand production from our Ravenswood gold mine and continue a strong partnership with the government and the local workforce and community that commenced in 2004,” said Resolute MD and CEO John Welborn.
“We continue to create value at Ravenswood and we expect the ongoing strategic review will now be able to incorporate expanded production rates as we prepare for an investment decision on the Ravenswood expansion project.”
The Ravenswood expansion project would deliver 1.5-million ounces of gold, at all sustaining costs of A$1 097/oz and an average gold production of around 115 000 oz/y.
Current underground mining activities will continue at the Mt Wright underground mine until late 2019, with processing augmented with low-grade stockpiles pending the development of the expansion project.
The expansion project had the potential to extend the Ravenswood mine life by at least 14 years.
A final investment decision on the expansion plan is targeted for the second half of 2019, following the completion of the strategic review.
The Queensland Resources Council (QRC) has welcomed the award of the new mining leases, saying it would help to secure 280 existing jobs, and create another 100 construction jobs for the new mine.
“At a time of rising unemployment in Queensland, decisions like this for Resolute Mining are a recognition that mining is a Queensland strength,” said QRC CEO Ian Macfarlane.
“More than 315 000 Queenslanders work in the resources sector. Their jobs are delivering record exports and record royalty taxes for the Queensland government.”