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Unity’s Henty mine to go on care and maintenance in late 2015

Unity’s Henty mine to go on care and maintenance in late 2015

Photo by Bloomberg

7th July 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed Unity Mining would place its Henty gold mine, in Tasmania, on care and maintenance in late 2015, as the company has been unsuccessful in adding new gold ounces through exploration drilling.

Unity said on Monday that a detailed review of Henty’s mineral inventory and mine-life production schedule has revealed that the best economic outcome would be to focus on maximising cash generation by recovering the remaining higher confidence and higher margin reserves. At the current rates, these reserves would be mined by 2015, allowing the mine to move to care and maintenance late that year.

“Since the acquisition of Henty in 2009, Unity has enjoyed strong support from our workforce, local and regional communities, as well as Mineral Resource Tasmania, and during this period Henty has been a significant contributor to the Tasmanian economy,” said Unity MD and CEO Andrew McIlwain, pointing out that the company had spent some A$60-million over the last 12 months on wages, contractors and suppliers at Henty.

“Unfortunately, our significant commitment to exploration drilling within the Henty mine during the last 12 months has not been successful in adding significant additional gold ounces to the mine life, and as such, the mine will transition to care and maintenance in the second half of 2015.”

McIlwain said that Unity would aggressively pursue mine financial performance and evaluate other opportunities in-mine, particularly the Darwin South offset target which was currently being drill tested.

“Our current plans and budget also include continuing to explore our highly prospective regional tenement package adjacent to and along strike from Henty. Any significant discoveries within the region may lead to a re-evaluation of the Henty mine’s future,” he added.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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