Photo by: Bloomberg
PERTH (miningweekly.com) – Gold miner La Mancha Resources has opened its A$110-million Mungari gold mill, near Kalgoorlie.
Western Australian Mines and Petroleum Minister Bill Marmion said over the weekend that the new Mungari mill’s production efficiency would mean that La Mancha could also restart its White Foil openpit mine.
It was previously thought that White Foil’s lower-grade ores were unviable.
When mining and mill processing reaches full capacity later this year, La Mancha’s gold production was expected to increase to 160 000 oz a year.
The mill employs 40 people. Reopening White Foil will provide employment to another 30 La Mancha staff and 50 drill and blast contractors, taking the total workforce to 280.
La Mancha has spent about A$250-million on the White Foil mine and the Mungari mill over the past two years, and the mine was expected to continue operations until 2020, with the potential to increase the mine life through further exploration.