Great Divide Mining (GDM) has outlined its “pathway to production” as it looks to re-open the Challenger gold mine in NSW.
With 17 mining leases and an exploration license spanning approximately 70km2 at its disposal, GDM is addressing plant and site maintenance issues to ready the mine for production.
GDM completed due diligence in January which led to the decision to begin developments on the mine, which includes an open cut and underground operation.
The due diligence process saw GDM determine Challenger’s upside. Reasons to move ahead with the development included the mine’s production history of more than 800,000 ounces, with a mill feed averaging over 150 grams (g/t).
GDM believed the processing plant hit the mark as well and would enable the company to be a near-term gold producer.
“GDM has spent the last four months completing due diligence work and finalising definitive agreements, time which has been used to deliver a double bottom line,” GDM chief executive officer Justin Haines said.
“We didn’t just access plant and equipment during the due diligence phase, we maintained and restarted it during the same period. As a result, the site is now in a fully maintained and operable state, pending a few modifications to the process flow sheet and some minor additional equipment.”
GDM became Challenger’s operator in November 2024, having inked a binding farm-in agreement with majority owner Adelong Gold.
This agreement was finalised last week, with GDM to earn a 15 per cent stake in Challenger by spending $300,000 on exploration. The company will earn a 51 per cent stake by reaching gold production.
Once GDM addresses known metallurgical issues at the Challenger gold plant and the mine process has been confirmed as commercially viable, the push to get the mine re-opened will be in full swing.
Optimisation efforts include finalising mine planning to improve the mine and plant process flow, commence open cut mining and dewater underground drilling, upgrade plant to meet underground production capacity, and resolve geological issues at various deposits. GDM will also conduct exploration drilling across the Challenger tenure.
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