Doray Minerals has announced some new moves for the company which will help it to push forward through the mining downturn, including workforce expansion.
This morning the WA gold producer announced commencement of site works at the Deflector Gold Project in the southern Murchison region.
Doray anticipates the former Mutiny Gold project will be a high-grade, low-cost project with copper credits and exploration upside, which together with the Andy Well will greatly increase the company output.
In addition, Doray Mineral managing director Allan Kelly announced on the eve of the Diggers and Dealers conference that the company would double its mining workforce, from 200 to 400, by 2017.
Construction of Deflector will begin in September this year, and production will begin by mid-2016, with a mine life of six years.
Civil site works and ground preparation works are currently underway at the Deflector site, ready for construction to begin on the process plant, which will incorporate a flotation circuit requiring a longer construction period.
“It’s a real step change for the company, going from one mine to double production with less mine risk and longer mine life,” Kelly said.
Kelly said the process plant at Deflector will be built by GR Engineering, which built the plant at Andy Well, and also has an investment in the company.
“They’re incentivised to do a good job, they are both a contractor and a shareholder in the company, so we’re looking forward to getting started as soon as possible.”
The Andy Well project, with a three year mine life remaining thanks to ongoing exploration, has already given Doray a record monthly production of 10,591 ounces of gold at an average grade of 12 grams per tonne in May.
“It’s good, we’ve had a record month in May, and a record quarter, and the full year was up 15 per cent, so production is going really well,” Kelly said.
Andy Well began production in August 2013 with a three year mine life, however further exploration has extended the mine life.