Evolution awards major contract at Mungari
PERTH (miningweekly.com) – Gold miner Evolution Mining has awarded a A$155-million contract to ASX-listed GR Engineering Services to complete plant expansion work at the Mungari gold project, in Western Australia.
The scope of work is to expand the existing Mungari process plant from 2-million tonnes a year to a yearly throughput of 4.2-million tonnes a year, including required changes to process plant buildings and associated infrastructure.
Evolution will invest A$250-million to increase the processing capacity at Mungari.
The gold miner on Friday said that planning for the expansion was well progressed, including initial engineering design and procurement works, which have already started, while site works are expected to start in mid-January 2024.
Evolution is targeting gold production of 200 000 oz/y during the life of the mine, and the expansion project is expected to reduce Mungari’s all-in sustaining cost by 18% to A$1 750/oz and extend the mine life to 2038.
“The award of this contract is a major milestone for the Mungari future growth project. It secures the critical processing plant infrastructure within our budgeted costs, locking in over 60% of the project costs, and secures a delivery time within the approved project schedule,” said Evolution MD and CEO Lawrie Conway.
“The feasibility study established a sound investment case with an internal rate of return for the project of between 19% and 28%, at a conservative A$2 400/oz and spot price of A$2 965/oz respectively.”
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation