Evolution Mining has achieved another year of record gold production and successfully met production guidance for the 2014 financial year. The company produced 427,703 gold equivalent ounces in the 12 months to June 30, a 9% increase on 2013 financial year group production of 392,920 gold equivalent ounces.
The annual figure was within the guidance of 400,000-450,000 ounces gold equivalent while group production for the June quarter was 111,899 ounces gold equivalent, exceeding guidance.
Evolution’s executive chairman Jake Klein says, “Since inception in November 2011 Evolution has built a strong reputation for reliability and predictability. It is very pleasing to have again delivered a production result that is consistent with our original market guidance. It is testament to the benefits of having a diverse portfolio of assets which allows us to deliver a level of operational predictability that is not possible in single asset companies.”
“This result would not have been possible without the commitment and tenacity of our employees and contractors. I would like to personally thank all Evolution employees and contractors for their contribution to this outstanding achievement.”
In its first full year of production, with commercial production having been declared effective July 1, 2013, Mt Carlton in Queensland exceeded all expectations with production of 87,952 gold equivalent ounces, well in excess of the guidance range of 65,000-75,000 ounces. This result was achieved primarily due to quicker plant ramp-up and better access to higher grade ore than expected.
Mining of the A39 silver deposit has ceased and A39 stockpiled ore will continue to be treated through to the end of August. Thereafter, production will come entirely from the V2 gold deposit.
Cracow, also in Queensland, is one of Evolution’s most consistent producers. The mine successfully transitioned to owner-miner on July 1, 2013 and the benefits were realized immediately with cost savings in the order of $18-20 million achieved during the year. Production of 95,064 ounces was well in excess of guidance of 82,500-90,000 ounces.
During the first half of the financial year Pajingo was restructured to be a leaner operation with a move to campaign milling and a focus on underground operations only. Production at the Queensland operation was impacted during this period by some rehabilitation work in the upper decline areas of the mine. The second half saw a more consistent performance, with a strong focus on cost reduction, capital discipline and productivity improvement resulting in a significant reduction in costs. Mine planning and resource definition drilling remain a key focus, with the aim of improving the predictability of the multiple high-grade ore sources.
Mt Rawdon in Queensland again proved to be one of Evolution’s most reliable operations with production of 103,755 ounces, well within original guidance. The mine transitioned to owner-miner on July 1, 2014 with material costs savings expected. Although early in the transition period, the change-over has gone smoothly to date. The Stage 3 cutback is now producing consistent ore volumes and grade and the Stage 4 cutback is advancing well.
At Edna May in Western Australia production was impacted by lower than expected grade and processing plant reliability issues that impacted throughput, especially in the first half. Plant throughput capacity and reliability improved following the successful installation of the variable speed drive to the SAG mill in March 2014. The operation continues to focus on reducing costs, with material savings locked in for the 2015 financial year in the areas of power, camp accommodation, explosives and a move to steel liners in the SAG mill. www.evolutionmining.com.au