Evolution set for first ore after Kundana deal


Evolution Mining has secured a mine milling agreement with East Kundana joint venture (EKJV) partners Rand Mining and Tribune Resources with first ore to be processed in October.

In July, Evolution acquired 100 per cent of Northern Star Resources’ stake in the Kundana Assets in the Goldfields region of Western Australia in an all-cash deal worth $400 million.

This included a 51 per cent interest in the EKJV which includes three underground mines called Rubicon, Hornet and Pegasus.

These assets are located eight kilometres from Evolution’s Mungari operations.

Evolution is already seeing the benefits of the EKJV acquisition at Mungari, according to the company’s September quarter report.

“The first benefits of the acquisition were realised immediately with the average grade processed for the quarter increasing from 1.52 to 2.12 grams per tonne, which was significant given that higher grade ore was only available from late August,” the company stated.

The company is still progressing through integration activities to simplify operations between East Kundana and Mungari.

This includes a review of contracts, department structures and cost improvement activities – which had all begun by the end of September.

“Preparation of an integrated life of mine plan and budget is progressing,” the company also stated.

In July, Evolution executive chairman Jake Klein highlighted the importance of the Kundana acquisition for the growth of the company’s presence in the region.

“This is a pivotal transaction that will transform Mungari to establish the operation as the fourth cornerstone asset in the Evolution portfolio,” he said.

“It presents a unique strategic opportunity for Evolution to consolidate the Eastern Goldfields region given our existing presence at Mungari, resulting in Evolution being one of the largest tenement holders in the Kalgoorlie region.”

Elsewhere for Evolution in the September quarter, the Cowal gold mine in New South Wales will have its Stage H cutback complete in October with access to higher quantities of commercial grade ore becoming available.

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