PERTH (miningweekly.com) – Gold miner Evolution Mining has completed the acquisition of a stake in the Ernest Henry copper/gold mine, in Queensland.
Evolution previously agreed to pay diversified miner Glencore A$880-million for a 30% stake in the operation, entitling the company to 100% of the gold production at the mine, subject to an agreed life-of-mine and block model.
“The addition of low cost gold production from Ernest Henry to our portfolio gives us exposure to another high-quality, long-life asset that further underpins the future success of our business,” said Evolution executive chairperson Jake Klein.
Ernest Henry currently has a mine life of 11 years, and has strong growth prospects beyond the current reserve. The acquisition is expected to add about 85 000 oz/y to Evolution’s bottom line.
Evolution is forecasting group gold production to reach between 800 000 oz and 860 000 oz in the 2017 financial year, with all-in sustaining costs estimated at between A$900/oz and A$960/oz.