PERTH (miningweekly.com) – Production at the Cowal underground mine, in New South Wales, has started some three months ahead of schedule, gold miner Evolution Mining reported on Monday.
The company told shareholders that first production from the Cowal underground mine was a major milestone in the planned growth at Cowal to more than 320 000 oz of gold in the 2024 financial year.
“We have achieved a major milestone at Cowal with the early commencement of production from the new underground mine. It is a credit to the project team to be able to commence production ahead of schedule and on budget in the current inflationary market conditions for project development and construction,” said CEO and MD Lawrie Conway.
“We are now on the pathway to increase Cowal’s production from the current 2023 financial year guidance of some 275 000 oz to 2024 outlook of some 320 000 low-cost ounces.”
Conway said that the project remained within the original $380-million budget.
Completion of the accommodation village and commissioning of the paste plant remains on track for the June quarter of this year.
Meanwhile, Evolution told shareholders on Monday that recovery plans at the Ernest Henry operation, in Queensland, remained on track after the company was forced to halt production following heavy rains.
The company said that as the recovery plan continued, the impact to group production would be better understood. In the meantime, Evolution’s liquidity remained strong, with the company’s cash position at the end of February ahead of plan, and the A$525-million revolver facility being undrawn.