The Board of Evolution Mining has approved to progress the Mt Carlton underground development, Stage 4 pit cut-back and relevant plant modifications.
Mt Carlton has a mine life to at least 2025 and these projects will allow production from the higher-grade Link zone to be brought forward. Evolution Mining is highly confident that the initial underground reserve can be expanded. Once the underground development is in place, additional drilling is planned to follow up on several promising drill intersections that are not currently included in the underground reserves or resources
Regulatory approval is still required prior to the commencement of the underground development, with Evolution Mining reporting that submissions to the Department of Environment and Science (DES) will be lodged in the coming month. First ore from the underground is planned to be delivered in FY21.
The capital expenditure requirement for the underground development and plant modifications is estimated at approximately AU$60 million of which approximately AU$10 million will be spent in FY19 and the remaining AU$50 million over FY20 to FY22.
Commenting on the approval, Evolution’s Executive Chairman, Jake Klein, said that the company’s focus continues to be on margin and profitability.
“Mt Carlton is a very high margin asset which has been a standout in Evolution’s portfolio. The mine has generated over AU$100 million in net mine cash flow in each of the last three years. The underground development of the Link zone ensures the continued production of high margin ounces.”
Evolution Mining is a leading, growth-focussed Australian gold miner operating five wholly-owned mines: Cowal in New South Wales, Cracow, Mt Carlton and Mt Rawdon in Queensland, and Mungari in Western Australia.
In addition, Evolution holds an economic interest in the Ernest Henry copper-gold mine that will deliver 100 per cent of future gold and 30 per cent of future copper and silver produced from an agreed life of mine area.