Ravenswood mine in golden milestone

THE first stage of the expansion of a gold mine at Ravenswood, which would produce about 200,000 ounces of gold a year from 2022, has been completed.

As part of the Ravenswood Expansion Project, Resolute Mining has completed the refurbishment of a third mill at the Nolans Processing Plant.

This allows the company to target an annual production of 80,000 ounces of gold a year.

Stage two of the expansion project would target 200,000 ounces of gold production a year from 2022.

Resolute is still to decide on whether it will go ahead with the investment.

Managing director and chief executive officer John Welborn said the strategic review of the Ravenswood Expansion Project demonstrated it was creating value for the company.

“Increasing the plant capacity at Ravenswood to 5 million tonnes per annum and using this capacity to beneficiate and process available lowgrade stockpiles delivers an immediately cash flow-positive, profitable mining operation at Ravenswood,” he said.

“More importantly, it is a step towards the larger production base that we believe is possible at Ravenswood.

“During 2020, the strategic review will evaluate the future capital demands of the expansion project, (and) contemplate the timing of an investment decision on stage two and how best to maximise the value for Resolute shareholders from this potential.”

The completion of the third mill means the mine is now producing positive operating cash flows. These are expected to continue as the expansion plan is developed.

In September, Resolute revealed a million ounces of gold had been added to the reserves of the Ravenswood Expansion Project. It places the operation among the 10 biggest in Australia.

The operation was threatened with closure three years ago before Resolute took on the mine.

The company is planning to spend about $150 million redeveloping mining pits close to the historic gold mining town to secure about 380 jobs – 280 in production and 100 in construction.

Last week a ceremony was held to mark the relocation of the former pool at Ravenswood State School. The school was moved because of the expansion of the mine.

Resolute’s Ravenswood project is not the only gold interest in North Queensland.

Laneway Resources opened its Agate Creek gold mine this year near Forsayth and Great Northern Minerals is looking to develop assets about 140km northwest of Townsville.