PERTH (miningweekly.com) - A strategic review by gold miner Apex Minerals has shown that fully using its Wiluna mill capacity could offer economic benefits, prompting the miner to start discussions with third parties regarding ore supply agreements.

Apex said on Wednesday that it was currently in discussions with multiple third parties regarding potential transactions that would bring additional throughput to the Wiluna mill, including the owners of the nearby Bogada Bore.

The gold miner launched its strategic review in January this year, aimed at enhancing shareholder value. The company said at the time that despite the substantial progress that had been made in the turnaround of the Wiluna project, the inherent value of the company was not being reflected in the current share price.

Apex said on Wednesday that a number of further operational efficiencies have also been identified during the review, including a reduction in the workforce and the return of surplus mining equipment, which would reduce operating costs.

“These positive developments, together with the impending sale of the Youanmi gold project for A$15-million, provides considerable comfort to the board that Apex can return Wiluna to a long-term sustainable gold producer,” the company said.

Meanwhile, Apex also said on Thursday that the second mill at Wiluna had experienced a girth gear failure, which management expected would take up to six months to repair or replace.

Notwithstanding this, mill processing would continue, with the coupling of the first and third mills to maintain throughput at a slightly reduced rate.

Apex said that production from the free milling high-grade Golden Age reef was also increasing as a result of the engagement of four airleg miners, and a 3 t excavator was expected on site within the next two weeks to recover high-grade underground stockpiles, spillage and road base from the ore development drives in Golden Age reef.

The total production target from these activities had been set at some 4 000 t, at 10 g/t gold, for some 1 300 oz/m of contained gold, in addition to the normal Wiluna underground activity.