Gold mine start faces flood delay

WORK will start at a new gold mine as soon as possible after the company behind the project was granted a mining lease by the State Government.

Laneway Resources is behind the Agate Creek Gold Project, northwest of Townsville and about 40km south of Forsayth.

The mining lease will start on March 1 and covers almost 690ha, covering the company’s Sherwood and Sherwood West “high grade” prospects.

Laneway has entered into an agreement with Maroon Gold for them to mine and process the gold.

This will be done at the Black Jack Gold Processing Plant, which is at Charters Towers.

“It is intended, pursuant to the mining and processing agreement entered into with Maroon Gold Pty Ltd, for mining operations to commence as soon as practicable and then process this ore through Maroon’s wholly owned CIL (carbon in leach) processing plant,” a Laneway statement said.

However, the floods that have crippled Townsville and the North West and damaged road networks, could delay work on the mine.

Laneway said council and state road assessments might take several weeks to complete, which could affect the timing and mobilisation of mining equipment to the site and road haulage of the product from Agate Creek to Charters Towers.

“Until floodwaters have fully receded and the road damage assessments are completed, timing of commencing mining remains uncertain, however it is currently expected that mining may be able to commence in April,” the statement said.

Charters Towers Regional Council Mayor Liz Schmidt welcomed the plan for the gold project.

“Were open for business,” she said.

“We are really keen to wel- come everybody with open arms as long as they abide by the rules.

“Our community was built on gold and we’re more than happy to welcome new people.”

Cr Schmidt said there were a number of gold companies already operating in Charters Towers and the surrounding area, which were good corporate citizens.

“They have a good relationship with the place,” she said.

Queensland Resources Council chief executive officer Ian Macfarlane said projects like this showed the confidence in the industry.

“The price of gold is holding up and there are opportunities in it but I think the resources sector is enjoying a bit of confidence at the moment, and obviously a commodity like gold is part of that,” he said.

“Gold has been a traditional metal for a long time and it’s just ticking along nicely.

“I think there’s a general confidence in the industry at the moment and that’s reflecting in everything from exploration through to the actual development of mines.”