Doray starts underground mining at Andy Well

Doray Minerals announced the start of its underground development and mining at the company’s Andy Well Gold Project in Western Australia.

The company finished its first portal trim blast last week and the decline has progressed a distance of around 16 metres underground.

The underground mine decline will be expanded down to about 65 metres below surface  and the ore will be stockpiled for treatment when the processing plant is commissioned in September.

Construction of the processing plant and other infrastructure is also on track, the company said in a statement.

Doray’s managing director Allan Kelley said the underground development was a landmark in Doray’s goal to become WA’s next high-grade gold producer.

“While the open pit mining has been exciting in itself, within the next month or so, we will commence mining the high-grade Wilber Lode from underground and this makes up the bulk of the deposit,” he said.

Doray announced a maiden gold mineral resource for the Judy Lode in March, a second high deposit within the project. This increased the project resource inventory by 30 per cent.

The new resource could extend the mine life at Andy Well beyond the 3.7 years originally indicated by the Bankable Feasibility Study, Proactive Investors Australia said.

The company had a cash balance of $31.8 million at the end of the March 2013 quarter. 

Doray announced the start of mining at its Andy Well Gold Mining Project near Meekatharra after starting exploration of the site in 2010.

The project is located about 45 kilometres north of Meekatharra, in WA’s northern Murchison region.

In March 2010 the company announced the discovery of the Wilber Lode gold deposit near the Great Northern Highway.

It announced further increases to the Wilber Lode Resource in December 2011, and again in March 2012.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.