Doray Minerals has completed the first gold pour at its high-grade Andy Well Gold Project in the northern Murchison region of Western Australia. This milestone marks the company’s official transition from successful explorer and developer to Australia’s newest high-grade gold producer.
The first gold pour was completed on August 5 and consisted of a 144 ounce (4.642kg) doré bar produced from the gravity circuit.
Doray’s managing director Allan Kelly says that the first gold pour is the culmination of 3.5 years of successful exploration, development and construction work since the initial discovery by Doray of the high-grade Wilber Lode gold deposit in March 2010. “We are extremely excited to be entering this new phase for the company as Australia’s newest high-grade gold producer,” says Allan Kelly. “Our work to date suggests that Andy Well will be a low-cost operation and we expect it to fall within the lowest quartile of Australian gold projects in regards to cash operating costs per ounce."
“I would like to thank all those who have been involved in the Andy Well Gold Project to date, including our staff, Board and management team and the various contractors and consultants, especially MACA Civil, GR Engineering Services and GBF Underground Mining Company.”
The company has also recommenced surface exploration drilling at Andy Well, with the current program testing for depth and strike extensions to the high-grade Judy Lode and for potential additional high-grade quartz lodes.
The Andy Well project is about 45km north of Meekatharra, in the northern Murchison region. In March 2010, Doray announced the discovery of the very high-grade Wilber Lode gold deposit, adjacent to the Great Northern Highway. Since announcing a maiden high-grade JORC-compliant gold resource for the Wilber Lode in February 2011, the company has announced subsequent increases to the resource in December 2011 and again in March 2012.
During 2012, Doray announced the maiden high-grade open pit and underground mining reserve for the project, completed a positive bankable feasibility study, made a formal decision to mine, increased its ownership of the project to 100%, secured a project finance facility from the Commonwealth Bank of Australia and completed a capital raising to fund all operating, exploration and corporate costs prior to first gold production. Mining and site works commenced in November 2012.
In March 2013 Doray announced a maiden high-grade JORC-compliant gold resource for the Judy Lode, a second high-grade gold deposit within the project, increasing the overall Andy Well Project resource inventory by 30%. Overall resources total 1.224 million indicated and inferred tonnes @ 11.3 grams/tonne for 444,000 ounces and reserves total 733,000 probable tonnes @ 10.6 grams/tonne for 250,000 ounces.