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Evolution finishes the year strongly

27th January 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Gold miner Evolution Mining has reported a strong quarter of production following the divestment of its Mt Carlton project to fellow-listed Navarre Minerals, in October last year.

Evolution on Thursday reported that gold production for the three months to December had reached 148 084 oz, down from the 170 681 oz produced in the September quarter, as production from Mt Carlton was excluded from the tally.

All-in sustaining costs (AISC) for the quarter reached A$1 347/oz, down from the A$1 413/oz reported in the previous quarter.

Evolution told shareholders that weather-related impacts at Cowal and Mt Rawdon restricted access to higher grade openpit ore although Cowal was still able to achieve its plan.

The Cowal operation, in New South Wales, delivered 60 371 oz of gold during the quarter, up from the 52 513 oz produced in the September quarter, with the operational performance achieved despite the impacts of both near-record monthly rainfall in November, associated regional flooding in nearby Forbes, and resource impacts caused by the Covid-19 pandemic.

Mt Rawdon, in Queensland, produced 12 377 oz of gold during the quarter, down from the 20 042 oz delivered in the September quarter, as excessive weather events impacting ore production from the pit necessitated the feeding of lower grade stockpiled ore, impacting gold production and unit costs. This was partially offset by a strong up-time performance from the mill.

At Ernest Henry, also in Queensland, Evolution’s share of production amounted to 21 093 oz of gold and 4 119 t of copper, compared with the 23 882 oz of gold and 5 598 t of copper produced in the previous quarter. AISC at Ernest Henry increased from negative A$1 345/oz to a negative A$882/oz, as a result of lower copper revenues, with copper sales in the quarter reaching 4 126 t at an average copper price of A$14 199/t.

Ernest Henry continues to be Evolution’s most cash-generative asset delivering net mine cash flow of A$79.5-million in the quarter. Evolution has now taken full ownership of Ernest Henry from January 6. Evolution paid Glencore A$800-million with a further A$200-million due and payable on January 6, 2023. Ernest Henry is expected to generate immediate benefits from increased copper production via increased cash flow and lower group all-in sustaining costs.

Evolution said on Thursday that the operation also has attractive growth potential below the current operating footprint which is the subject of a prefeasibility study (PFS). Mineralisation has also been intersected 400 m vertically below the PFS area and is open at depth.

Meanwhile, gold production at the Mungari operation, in Western Australia, reached 34 412 oz during the quarter under review, on par with the 34 765 oz produced in the September quarter, with first ore processing from the East Kundana completed as planned during the quarter.

In Ontario, Evolutions’ Red Lake mine produced 19 832 oz of gold, compared with the 23 768 oz in the September quarter, with AISC increasing from A$2 697/oz to A$3 060/oz in the same period. Evolution noted that the project was well-positioned to continue the development rate ramp-up to provide access to additional mining fronts going forward.

Improvements have been implemented to reduce stope cycle times and ore dilution which is expected to translate into a material improvement in production for the remainder of the 2022 financial year.

Evolution has maintained its full-year group production guidance at between 670 000 oz and 725 000 oz, with AISC estimates of between A$1 135/oz and A$1 195/oz.

 

Edited by Creamer Media Reporter

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