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.”