Evolution Mining has entered into a binding agreement with Newcrest Operations Limited, a wholly-owned subsidiary of Newcrest Mining, to acquire the Marsden Copper-Gold Project in Central West New South Wales.
Marsden is a copper-gold porphyry deposit southeast of Evolution’s operating Cowal Gold Project. It is the nearest known sizeable mineral deposit to the Cowal operation outside the Cowal tenement package and has strategic value to Evolution’s exploration activities in the region.
The Marsden deposit hosts an indicated and inferred resource of 180 million tonnes grading 0.20 g/t gold and 0.38% copper, containing 1.1 million ounces of gold and 670,000 tonnes of copper.
Evolution will make an upfront payment of A$3 million on completion of the acquisition and a further A$7 million payment contingent on a decision to mine.
A technical review by Evolution has shown that the potential to develop the Marsden deposit is enhanced by utilising the Cowal milling circuit and associated infrastructure. The current Cowal treatment facility is unable to treat Marsden material concurrently with Cowal ore and any option involving processing at Cowal will be at the end of the Cowal mine life.
Evolution’s executive chairman Jake Klein said, “The Marsden project provides long-term optionality to our nearby Cowal operation and has the potential to further extend the life of what is already a long-life operation.”
Evolution operates six mines – Cowal in NSW; Mt Carlton, Mt Rawdon and Cracow in Queensland; and Mungari and Edna May in Western Australia.
In August, Evolution announced that it was acquiring an economic interest in the Ernest Henry Copper-Gold Project in Queensland. Under the deal, Evolution paid Glencore A$880 million up-front, to acquire all the gold, and 30% of the copper and silver produced from an agreed-upon life of mine area. In return, Evolution must contribute 30% of future production costs.