Dooen mine closer
Government approval and financial backing are all that remain in providing the green light for a full-scale mineral-sands mine near Dooen north-east of Horsham.
Mining company WIM Resource is preparing work towards gaining approvals through an Environmental Effects Statement and securing finances based on a bankable feasibility study.
The overall process is likely to take about two years, which keeps the project on schedule for a 2022-2023 mining-operation start.
Predictions are that the Avonbank mine, which has an estimated lifespan of about 30 years, will generate millions of dollars for the Horsham district economy.
It is one of four of the world’s largest proposed sand-mining projects within a 70-kilometre radius of Horsham.
WIM Resource project manager Michael Winternitz said the company had completed its Avonbank test-pit project where results had confirmed the site appropriate for establishing a long-term mine and separation plant.
“One of the primary aims of the pilot test pit and separation plant was to confirm we can separate heavy minerals from the ore,” he said.
“We have found we can do that very well and with good efficiencies while producing consistently high concentrates.
“This augurs very well for the project moving forward.
“We’ve also done quite a few environmental studies to understand soils and groundwater. We have also done geotechnical studying to ensure the land can settle and rehabilitate as quickly as possible.
“This has been very positive and something we will continue to monitor for the next six months.
“The test pit has been very valuable in informing the bankable feasibility study – enabling the company to confidently seek finance for the project.
“The company has also established a community reference group including a wide range of community stakeholders to allow for a free flow of information.
“Subject to approvals and finance, the timeline of 2022-2023 for fullscale mining is on track.”
WIM Resource constructed the Avonbank pilot plant last year and started processing ore in September.
The process involved feeding about 10,000 tonnes of ore through the process plant to produce heavy-mineral concentrate for further testing in China.
“We’ve been employing a local crew to man the plant and we are pleased to have been able to use existing skills in Horsham. We will be able to do that in the future for the mine proper as well,” Mr Winternitz said.
Mr Winternitz said there had been considerable community interest and engagement in the pilot project.
“We have had more than 100 different stakeholders come and visit the project,” he said.
“This has included groups and clubs, a Wimmera school and even a work-experience student who has been on site.
“A big part of it all is that the community is engaged and understands exactly what we’re doing and has the opportunity to have input to approvals.
“This is a 30-year project and needs community support and engagement.
“WIM Resource is working hard to have as many people in the community involved as possible.
“It’s very exciting to see the project proceed and now the company is working hard to engage the community and gain approvals.”
Mr Winternitz also described market volatility based on the worldwide impact of the coronavirus as ‘dynamic’, adding that circumstances had not had a direct impact on the project.
“The project is quite strong in size and infrastructure, which makes it a little easier to weather the financial shocks we’re seeing now,” he said.
“It is a good time to be doing the feasibility work and getting the project approved.”
WIM Resource is also scoping out prospects for another mineral-sands site at Bungalally, about 10 kilometres south of Horsham.
The company has a retention licence for the project, allowing it to explore and further develop planning.
It is also exploring for copper and gold within the Stavely arc, a broad geological region including parts of the Wimmera.