GME waiting on approval to extend Devon mine
GME Resources hopes to receive approval from the Department of Mines and Petroleum next month to expand the Devon gold mine near Laverton.
The small-scale open pit was completed in May last year and the proposed expansion will include a cutback to deepen the pit to about 40m.
Processing will be undertaken at Saracen Mineral Holdings’ Carosue Dam plant.
GME managing director Jamie Sullivan, in a statement to the ASX, said a mining proposal was submitted to the DMP in December.
“The company anticipates that approval to commence the operation will be received in February,” he said. “All other approvals and appointments are now in place to fast-track the development.”
GME produced 2195 ounces from Devon last year and generated a $1.57 million operating surplus.
The entire operation was completed in a 30-day turnaround.
The plan was for Devon’s cash flow to support the Perthbased nickel exploration company’s focus on the NiWest project, next door to Glencore’s Murrin Murrin nickel operations.
GME’s proposed nickel laterite heap leach project has been in development since 2004 and has estimated capital costs of $460 million, with a mine life of more than 20 years.