The Central Murchison gold project.
JOHANNESBURG (miningweekly.com) – Western Australian gold miner Westgold has swung to an after-tax loss of A$713 620 for the half-year ended December, despite growing its revenue by 6% year-on-year to A$219.19-billion.
The net loss of the miner, which owns the Central Murchison gold project (CMGP), the Higgins gold operation, South Kalgoorlie gold operations and the Fortnum gold project, compares with a profit of A$12.41-million in the corresponding period of the previous financial year.
The cost of sales rose from A$188.33-million in the six months ended December 2016 to A$211.56-million in the period under review.
Cash flows from operating activities were A$19.57-million, compared with A$48.27-million a year earlier, while cash flows used in investing activities increased to A$79.5-million, from A$56.85-million. The higher cash flows used in investing activities was as a result of the refurbishment of the Tuckabianna processing plant at the CMGP and the initial development phase for the Big Bell, Jack Ryan and Starlight underground projects, Westgold reported on Thursday.
The Tuckabianna plant, in the southern portion of the CMGP, is currently being refurbished and is expected to be completed ahead of schedule and under budget, with gold production to start at the end of the March quarter.
The addition of a second processing plant has resulted in Westgold dividing the project into two main production hubs: Meekatharra, using the 1.6-million- to 1.8-million-ton-a-year Bluebird plant as processing hub for ores in the northern part of the CMGP and the Cue gold operations using the 1.2-million- to 1.4-million-ton-a-year Tuckabianna plant for ores in the southern part.
The Big Bell mine is the feature mine of the CMGP and it would become the feature mine of the Cue operation. When operating at steady state, this sub-level cave mine could feed the Tuckabianna plant in its own right.
Westgold reported that, after nearly 18 months, the task of dewatering the historic Big Bell mine had been completed. The rehabilitation of the decline and associated mine infrastructure was under way.
“Current estimates suggest that ore driving to enable development of the sub-cave level will commence in early 2019,” the company stated.