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PERTH (miningweekly.com) – Australian gold miner Evolution Mining on Friday confirmed reports that the company had been engaging private gold producer La Mancha in negotiations regarding potential asset acquisitions.
Evolution reported that discussions with La Mancha had taken place regarding a possible transaction involving the private firm’s Western Australian assets; however, the company was quick to point out that no sales terms had been agreed upon.
“There is no certainty that these discussions will lead to a transaction,” Evolution said in a statement.
La Mancha has a combined measured and indicated resource of 34.1-million tonnes, grading 2.08 g/t gold for 2.28-million ounces of gold in Western Australia, along with proven and probable reserves of 10.3-million tonnes, grading 2.93 g/t gold for 971 000 oz of gold.
The flagship Frog’s Leg underground mine is about 20 km from Kalgoorlie, with the White Foil openpit mine about 2 km from the Frog’s Leg operation. The White Foil project was restarted in mid-2014, following the construction of the on-site Mungari mill.
White Foil was expected to deliver between 30 000 oz and 35 000 oz of gold in the full-year, with Frog’s Leg expected to produce between 130 000 oz and 135 000 oz.
Evolution at the end of the December interim period had reported record production of 220 444 oz of gold equivalent ounces from its own operations.