PERTH (miningweekly.com) - Gold miner Castlemaine Goldfields...

PERTH (miningweekly.com) - Gold miner Castlemaine Goldfields would have to revise its mine plan for the Ballarat mine, after its ore sources for the gold processing plant performed below expectations.

The start-up and recommissioning of the Ballarat mine started in the September quarter this year, and to date, around 28 000 t of ore has been mined, at an average grade of 2.3 g/t. Around 955 oz of gold has been produced to bullion.

The miner said in a statement that the recommissioning of the gold processing plant had been planned around low-grade ore, however, higher-grade ore from two new sources was added into the short-term mine plan to add cash flow and allow further time to reassess the first significant ore source.

Unfortunately, neither of these new sources had performed to expectations, Castlemaine said.

The company’s board has now decided to prioritise mining activities and focus on the planned higher-grade ore sources, and a review of all expenditure has also been initiated.

“The primary objective of the mine plan continues to be the development down to the large basal portion of the mineralisation known as the Mako fault zone. The experience to date has not diminished this target,” Castlemaine said.

The company now planned to focus on achieving access to this mineralisation in the shortest time possible, and was currently reviewing options to achieve this objective, the timeframe needed, and the associated funding requirements.

“We are obviously extremely disappointed with having to implement a revised mine plan that will curtail some business activities,” said MD Matthew Gill.

“The existing strategy, which relied on certain near-term ore sources to generate revenue to assist us in reaching our primary objective of the main Mako Lode of gold mineralisation at depth, when projected forward based on performance to date, required decisive action.”

Gill said that the company remained confident of the potential for economic gold production from the Ballarat goldfield, however, he added that it needed to access and start mining the more prospective Mako Lode to provide a first demonstration of this potential.

Castlemaine bought the Ballarat project from Lihir Gold for A$4.5-million last year.


Edited by: Creamer Media Reporter





TOPICS IN THIS ARTICLE
City Company Facility Industry Term
Perth
Ballarat
Castlemaine Goldfields
Ballarat Mine
Gold Processing Plant
Start-up
Person
Mako Lode
Matthew Gill

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