Name of the Project
Ravenswood gold mine expansion project.

Location
The Ravenswood mine is located in north Queensland, Australia.

Client
Resolute Mining.

Project Description
Resolute Mining is examining the potential for a large openpit development at the Ravenswood mine. This will entail the development of two openpits – Sarsfield and Buck Reef West – and expanding the processing plant from 1.5-million tonnes a year to 2.8-million tonnes a year as Resolute Mining starts to mine Nolans East.

Nolans East represents the start of the transition back to large-scale openpit mining.

The Sarsfield deposit has a mineral reserve of 1.2-million ounces and a resource of 1.3-million ounces. Buck Reef West has a 1.2-million-ounce resource. Nolans East has a 71 000 oz reserve.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
Initial capital expenditure has been estimated at $130-million, with about double this amount expected to be spent over the next five years.

Duration
Not stated.

Latest Developments
Resolute Mining has hedged another 35 000 oz of gold, at an average price of A$1 728/oz, taking advantage of the strong Australian dollar gold price to support the expansion project at its Ravenswood mine.

The additional 35 000 oz is scheduled for monthly deliveries of 5 000 oz between June and December next year.

The average gold price for the additional forward sold gold is at a premium to Resolute’s budgeted gold price for its Ravenswood gold mine of A$1 700/oz, with the new hedging being in addition to the remaining forward gold sales programme of 50 000 oz.

The company’s total gold hedge book currently consists of 85 000 oz in monthly deliveries until December 2019, representing less than 20% of Resolute’s expected gold production over this period.

The gold hedging is expected to protect project returns during the staged development phase of the new 14-year mine life at Ravenswood. The development phase at the mine will result in underground mining at Mt Wright coming to an end during the current financial year, and the operation transitioning back to a large-scale openpit mine.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Resolute Mining, tel + 61 8 9261 6100, fax + 61 8 9322 7597 or email contact@rml.com.au.