Evolution Mining’s Cowal gold operation has commenced underground production ahead of schedule.
The Cowal operation is located 350km west of Sydney has been owned by Evolution since July 2015.
The first underground stope has commenced being mined and processed this month, with continued ramp up of the underground area expected over the remainder of this financial year.
“We have achieved a major milestone at Cowal with the early commencement of production from the new underground mine,” Evolution chief executive officer and managing director Lawrie Conway said.
The production is a full three months ahead of schedule and remains within the original $380 million budget.
The completion of the accommodation village and commissioning of the paste plant remain on track for the June 2023 quarter.
“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,” Conway said.
“We are now on the pathway to increase Cowal’s production from the current FY23 guidance of ~275,000 ounces to FY24 outlook of ~320,000 low-cost ounces.”
Evolution has also announced that its recovery plan for Ernest Henry is still underway after heavy rainfall in north-west Queensland forced its production suspension earlier this month.
“As the recovery plan continues, the impact on the group FY23 guidance will be fully understood and communicated,” Evolution said in a statement.
“The company’s liquidity remains strong with the cash position at the end of February ahead of plan and the A$525 million revolver facility being undrawn.”