Development of Alkane Resources’ Tomingley mine, located 60 kilometres north of Parkes, New South Wales, is well under way.
Earthworks have begun, after the company was awarded a mining lease for the $116 million gold project in February.
Construction is ramping up with the project’s processing plant footings in place, and Alkane’s managing director Ian Chalmers reports infrastructure basics will be completed by November.
Parkes Champion Post reports that the 46 kilometre water pipeline from Narromine to Tomingley is already completed.
Chalmers said work is “most definitely rocketing along” and with 60 workers currently on site the miner expects the site to be commissioned late this year.
“A lot of earthworks on the western side of the (Newell) highway are done, so that means all of the drainage and roads and things like that,” he said.
Earthworks on the eastern side of the highway will be launched as the processing plant takes shape, he said.
“We’ll start to build the processing plant in the next couple of weeks,” Chalmers said.
“It will take five months or so to build it, but in the meantime we’ll go across to the eastern side of the highway and do all the earthworks for the mining there.
“We also have to build the highway underpass. There’s a fair bit going on.”
The ball mill, which is currently in pieces on the site, will also be assembled shortly.
Gold production will begin at the mine in early 2014, Chalmers told the company’s annual general meeting in Sydney.
With an expected mine life of 10 years, up to 60,000 ounces will be produced annually through open cut and underground operations.
The company is also developing one of the world’s largest zirconium resources, the Dubbo Zirconia Project.
Based on an expected mine life of 20 years and one million tonnes per annum production, the project has a present net value of $1.23 billion.
The two projects will require an investment of about $1 billion and are expected to generate up to 1000 construction and production jobs.