Gold miner Doray Minerals plans to suspend mining at the Andy Well underground operation in Western Australia at the start of November.
The company had been investigating the potential for combining the Andy Well mine with its Gnaweeda project as a way to optimise cashflows and profitability.
However, as Doray’s studies progressed, underground mining at Andy Well revealed a reduction in strike length at the operation’s Wilber and Judy ore bodies.
“As a result, gold production has been reduced and forecast unit costs of the operation remain high,” Doray outlined in an ASX announcement.
Therefore, Doray has decided to shorten the mine plan for Andy Well, with the operation to be suspended on November 1 and the mine placed on care and maintenance.
Andy Well has produced more than 300,000 ounces of gold since 2013.
Meanwhile, Doray is planning to make a final investment decision at Gnaweeda later this year.
“Current studies show ore could potentially be delivered from the Gnaweeda project as early as June 2018,” Doray explained.