Evolution Mining has secured board approval for a suite of high-return growth projects and strengthened its partnership with Triple Flag International, setting the stage for expanded gold and copper production at Northparkes.
At Northparkes, Evolution will develop the E22 block cave with a capital investment of $545 million, establishing a long-life, low-cost underground operation expected to deliver a 28 per cent return at base metal prices and 38 per cent at upside prices.
A $75 million investment in the Coarse Particle Flotation Project will enhance the flotation and dewatering areas of the processing plant, generating estimated returns of 23 per cent to 43 per cent. In addition, a $14 million expansion study will explore increased mill capacity.
Elsewhere, the Ernest Henry operation will advance the Bert deposit with a $160 million investment, unlocking additional mill feed and generating increased returns.
“The investments announced today are expected to deliver returns in the range of 23 per cent to 48 per cent, which is higher than our current portfolio’s average return of 18 per cent,” Evolution Mining chief executive officer and managing director Lawrie Conway said.
“This disciplined approach…allows us to also continue investing in key exploration projects like the Two Times Fred and Clisbako projects in Canada.”
In parallel, Evolution has entered an amended metal purchase and sale agreement with Triple Flag International, providing an upfront refundable deposit of $120 million aligned with the E22 development and reducing the streaming rate on the gold-rich E44 deposit.
The agreement also creates a pathway for the potential development of additional gold-rich deposits across the Northparkes tenement.
“The gold potential of the Northparkes land package in this higher gold price environment is immense, and we look forward to Evolution continuing its strong track record of exploration success,” Triple Flag chief executive officer and director Sheldon Vanderkooy said.
“We are pleased to provide additional development funding to Evolution for guaranteed minimum gold and silver deliveries from the gold-dominant E44 deposit, which will create value for the shareholders of both Evolution and Triple Flag.”
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