Evolution acquires Marsden copper-gold project

Evolution Mining has entered an agreement with Newcrest to acquire the Marsden copper-gold project in NSW.

Evolution will pay $3 million on completion of the acquisition, and a further $7 million payment contingent on a decision to mine.

The site is immediately south-east of Evolution’s Cowal gold mine and, following a technical review, the company found that they could increase the potential to develop the Marsden deposit by using Cowal’s milling circuit and associated infrastructure.

Cowal’s treatment facility, however, cannot treat both site’s material at the same time.

“The current Cowal treatment facility is unable to treat Marsden material concurrently with Cowal ore and hence any option involving processing at Cowal will be at the end of the Cowal mine life,” the company said.

Evolution executive chairman Jake Klein said, “The Marsden project provides long term optionality to our nearby Cowal operation and has the potential to further extend the life of what is already a long-life operation.”

This comes after Evolution acquired a major 30 per cent stake in Glencore’s Ernest Henry copper gold mine in QLD – entitled to 100 per cent of the mine’s gold and 30 per cent of its copper and silver production – with Glencore controlling the day to day operations.

In FY16 Evolution produced 803,476 ounces of gold at an all in sustaining cost (AISC) of $1014 per ounce, generating $428.2 million in net mine cash flow.

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